GBP/USD Price Analysis: Bearish bias, heads for a test of 1.2500

• Cable drops for the second day in a row, continues on corrective mode.
• Downside risks are rising but significant support is seen around 1.2500.

The daily chart shows still more slides likely but pound is holding above the key 20-day moving average and on top or the 1.2500 horizontal support area and above an uptrend line.

A firm slide below 1.2500 would suggests a test of the mentioned trendline near 1.2440 that if broken would leave GBP/SUD vulnerable to more losses.

The 4-hour chart also presents a configuration pointing to the downside, for a test of 1.2500 over the next hours. The negative bias will remain in place as long as it holds below 1.2570 (20-SMA in 4-hour). Further to the upside, a firm break of 1.2600 would clear the way to more gains.

GBP/USD 4-hour chart

GBP/USD daily chart

Technical levels