The GBP/USD currency pair experienced more weakness on Monday, causing the exchange rate to drop below the 1.27 handle. As a result, the monthly S2 at 1.2624 has become the main support now, which should limit any bearish reactions today. Another leg down is the most likely outcome, as technical indicators are giving distinctly bearish signals now. A breach of the monthly S2 is to open the door for the 1.25 mark to be reached by week’s end, which would be a two-month low for the Cable. Despite the recent bearish developments, the Pound is still expected to eventually reach the 1.32 zone, where the three-year down-trend is located. Once this situation occurs, that is to be the key point on the Cable’s future
