Even though the GBP/USD currency pair experienced some volatility on Wednesday, trade still closed with the Cable remaining relatively unchanged. The pair was also unable to stabilise above the monthly S1, which suggests that more downside movement is possible. However, technical studies are unable to fully confirm this scenario. The 1.2624 level, namely the monthly S2, is still likely to be the bottom floor, where demand is expected to be sufficient to either limit the losses or even trigger a rebound. In case the Sterling manages to outperform the Buck, thus, climb above the monthly S1, a potential resistance area would be just above the 1.28 handle, represented by the 200hour SMA and the upper Bollinger band.
