GBP/USD Retest Scenario: Key Levels to Watch

In GBP/USD, after briefly surpassing the significant 200-day moving average level and encountering selling pressure at the also significant level of 1.2600, the price retreated below the average. For this movement to be considered a retest, the price needs to climb back above the 1.2542 level and sustain it. Therefore, the first resistance level to watch for is at this level. If the price manages to surpass it and gain momentum, the next target would be the range between 1.2600 and 1.2610. Above this range, the third resistance level at 1.2685 could be followed. On the downside, if a downward movement occurs, the price, which has been in an upward channel for about two weeks, might find initial support around the range of 1.2500-1.2510. If this range is breached, the next support level to monitor would be between 1.2465 and 1.2475. Below this level, the range of 1.2420-1.2400 would serve as a major support zone.