Severe bearish momentum on Tuesday caused the GBP/USD currency pair to pierce the ascending channel’s support line, with the support around 1.2624 limiting the losses. Due to the strong demand at this area, the Sterling has the opportunity to erase some of yesterday’s losses, despite technical indicators in the shorter timeframes suggesting otherwise. The RSI specifically both in short and medium terms approached its bottom turnaround point, which implies a recovery could be due. Intraday gains should then be capped around 1.2720, where a relatively tough resistance on the hourly chart rests. On the other hand, in case more bearish momentum persists and the monthly S2 fails to hold the pair, the 1.2560 mark is the area to consider as another potential support.
