The British pound is testing back towards the 1.2700 area against the US dollar, as the trading action remained centred around the pairs key 200-day moving average. A break under the GBPUSD pair 200-day moving average could spark the next major decline towards the 1.2500 area. To the upside, GBPUSD bulls need to break past the 1.2770 level to encourage a rally towards the 1.2900 resistance zone.
The GBPUSD pair is only bearish while trading below the 1.2770 level, key support is found at the 1.2680 and 1.2500 levels.
If the GBPUSD pair trades above the 1.2770 level, key resistance is found at the 1.2840 and 1.2900 levels
