The pound remains under pressure from fundamental factors, among which are the risks of a tough Brexit and the subsequent slowdown of the British economy, as well as the consequences of the coronavirus pandemic.
The Bank of England's penchant for soft policy also puts downward pressure on the pound. The Bank announced its readiness, if necessary, to take additional measures to support the economy and return inflation to the target level of 2%.
Today, the pound is falling against the backdrop of the beginning of intensive negotiations between the EU and the UK on trade. Previously, the two sides failed to make significant progress.
Despite the growth observed during today's Asian session, the GBP/USD pair is again falling at the beginning of the European session. GBP/USD continues to be traded below the key resistance level of 1.2590 (ЕМА200 on the daily chart) and short-term resistance levels of 1.2445 (ЕМА200 on the 1-hour chart) and 1.2460 (ЕМА200 on the 4-hour chart).
Short positions are preferred in the zone below these resistance levels.
In an alternative scenario, after the breakdown of the resistance level 1.2460 GBP/USD will resume the upward trend and go towards the resistance level 1.2590, and after its breakdown, growth may continue to resistance levels 1.3210 (Fibonacci level 23.6% of the correction to the reduction of the pair GBP/USD in the wave, which began in July 2014 near the level 1.7200) 1.3160 (ЕМА200 on the weekly chart).
The most promising for the GBP/USD at the moment are short positions.
Support Levels: 1.2250, 1.2200, 1.2085, 1.2000, 1.1410
Resistance Levels: 1.2340, 1.2445, 1.2460, 1.2590, 1.2810, 1.2930, 1.3000, 1.3160, 1.3210
Trading Scenarios
Sell by market. Stop-Loss 1.2470. Take-Profit 1.2300, 1.2250, 1.2200, 1.2085, 1.2000
Buy Stop 1.2470. Stop-Loss 1.2420. Take-Profit 1.2510, 1.2590, 1.2810