GBP/USD forecast: The British Pound facing key resistance

Recently, the British Pound made many attempts to settle above the 1.2800 and 1.2810 resistance levels against the US Dollar. However, the GBP/USD pair failed to gain momentum above 1.2815 and later declined.

The last swing high was formed at 1.2808 on FXOpen and later the pair started a downside move. It declined below the 1.2750 support and the 50 hourly simple moving average.

The decline was such that the pair traded close to the 1.2700 level and a low was formed at 1.2702. Later, the pair corrected higher and traded above the 1.2740 level. It also moved above the 38.2% Fib retracement level of the recent decline from the 1.2808 high to 1.2702 low.

However, the pair failed to clear the 1.2755 level and the 50 hourly SMA. More importantly, the 50% Fib retracement level of the recent decline from the 1.2808 high to 1.2702 low acted as a solid barrier for buyers.

Above 1.2755, there is a major bearish trend line in place with resistance near the 1.2780 level on the hourly chart. Therefore, if the pair corrects above the 1.2755-60 zone, it could face a lot of selling interest near the 1.2780 level.

Overall, GBP/USD remains in a downtrend unless buyers push the pair above 1.2780 and 1.2800. On the downside, an initial support is at 1.2720, below which the pair could retest the 1.2700 area in the near term.