The British pound is back under pressure against the US dollar, after reports surfaced that British Prime Minister Theresa May could face a leadership challenge. The GBPUSD pair is now testing the psychological 1.2500 level, after being sold heavily following a brief technical correction above the 1.2600 level. The bearish head and shoulders pattern continues to unfold, with the downside projection extending towards the 1.2200 level.
The GBPUSD pair is strongly bearish while trading below the 1.2550 level, key technical support is found at the 1.2480 and 1.2380 levels.
If the GBPUSD pair trades above the 1.2550 level, key resistance is found at the 1.2600 and 1.2637 levels.
