The British pound is once again testing demand above the 1.2600 level against the US dollar after British Prime Minister Theresa May won yesterday’s Conservative party leadership challenge. The GBPUSD pair remains bearish while trading below the 1.2657 level and is still vulnerable to losses below the 1.2500 level. The GBPUSD pair is likely to take direction from the outcome of the European Central Bank policy meeting.
The GBPUSD pair is only intraday bullish while trading above the 1.2657 level, key technical resistance is found at the 1.2700 and 1.2730 levels.
If the GBPUSD pair trades below the 1.2600 level, key technical support is found at the 1.2550 and 1.2480 levels.