GBP/USD remains vulnerable, with key support at 1.2600 under pressure

Guillermo Alcala FXStreet

The pound loses ground on USD strength and a risk-off sentiment
Speculation about BoE cuts likely to add pressure on the GBP
A double-top at 1.2730 might trigger a trend change

The Pound is trading lower on Tuesday, weighed by negative market sentiment and a somewhat stronger USD with bears looking at the 1.2600 support area.

Speculation about BoE rate cuts

Beyond that, UK interest rate swaps have boosted speculation that the BoE might start cutting interest rates in June 2025, which is giving further hope for Pound sellers.

In the calendar today, the final of the UK Global/CIPS Services PMI and, in the US, the ISM Services PMI and October’s JOLTS Job Openings will provide the fundamental framework.

Potential double top at 1.2730

The technical picture shows the pair losing bullish momentum with price action crossing below the 4h 50 SMA aiming to 1.2600. A clear move here would trigger a double-top at 1.2730 increasing pressure towards 1.2517 ahead of the measured target, at 1.2460.

On the upside, immediate resistance lies at 1.2645 and 1.2730.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2628
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.2632

Trends
Daily SMA20	1.2487
Daily SMA50	1.2307
Daily SMA100	1.2478
Daily SMA200	1.2474

Levels
Previous Daily High	1.2724
Previous Daily Low	1.2604
Previous Weekly High	1.2733
Previous Weekly Low	1.2591
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.265
Daily Fibonacci 61.8%	1.2678
Daily Pivot Point S1	1.2582
Daily Pivot Point S2	1.2533
Daily Pivot Point S3	1.2462
Daily Pivot Point R1	1.2703
Daily Pivot Point R2	1.2774
Daily Pivot Point R3	1.2823

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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