The GBPUSD pair started its free-fall after hitting the high of 1st November at 1.2972. Currently, the GBPUSD pair is testing the major support level at 1.2811. This level might give us a hint about the next potential move for the GBPUSD pair. A strong bounce from the critical support at 1.2811 might push the price north and towards the bearish trend line resistance at 1.2846. A daily closing of the price above that level will reinforce the bullish momentum. Eventually, we might see a strong recovery attempt in the GBPUSD pair.
On the downside, a break below the support at 1.2811, might cause an extensive downfall in the British Pound. Breaking below that level might lead to push the GBPUSD pair towards immediate support at 1.2702. The level 1.2702 is going to play a crucial role since a valid break of that level might result in a sharp fall in the price. Yesterday’s BoE MPC Official Bank Rate Vote is not favoring the optimistic GBPUSD bulls. On the other hand, market volatility in GBPUSD has ceased after Mark Carney’s speech. And this might result in a consolidated price movement. Considering all the issues, cable is now trading at a very critical stage where anything is possible.