The British pound sterling is holding steady near a two-month low.

Prices have barely moved after the GBPUSD fell to the support area near 1.2721 – 1.2673. This level was marked by the previous resistance area in June and July. The consolidation here could see the GBPUSD reversing losses as a result.

The near term bounce could open the way for prices to test the 1.3000 handle.

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However, a lot of this will depend on whether the cable can form support above the 1.2750 handle.

For the moment, the hidden bearish divergence on the 4-hour Stochastics suggests that prices could continue to hover near the current levels, if not move lower.

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