FX:GBPUSD is going to leave the sideways range with the negative fundamental background. On D1 the price is breaking the trend line, and at the same time the dollar is conquering new highs.
The pair is declining amid the strengthening of the dollar index, which is connected with the news on inflation. The medium-term outlook is defined and thus gives us an indication of a possible decline. At the moment the key area is the zone of 1.2518. A breakout and consolidation of the price below this zone will be a confirmation of the bears' intention to go even lower. The pound is weak and may update the lows.
Resistance levels: 1.25697 Support levels: 1.2518, 1.24489
Technically, amid the strong dollar, the pound is testing new lows and is preparing to go even lower. I do not think that the bulls at 1.2518 will hold the price for a long time. We are waiting for a breakout and further decline.