The British pound is starting to appear overstretched around the 1.2700 level against the US dollar as a number of key downside risks for sterling still remain place. A deeper bearish correction may see the GBPUSD pair test back towards the 1.2600 level. GBPUSD bulls need to maintain price above the 1.2730 resistance level to inspire further buying towards the 1.2770 level.
The GBPUSD pair is only bullish while trading above the 1.2700 level, key resistance is found at the 1.2730 and 1.2755 levels.
If the GBPUSD pair trades below the 1.2700 level, key support is found at the 1.2645 and 1.2600 levels.
