GBP/USD is trading near a monthly low

Today, the GBP/USD pair is trading in the range of 1.2725-1.2800, after reaching a monthly low of 1.2705 yesterday. The hourly chart shows a sharp decline after the short-term impulse growth recorded on April 4. The price peaked at 1.315, but then a rapid decline began, as a result of which the pair fell below the key level of 1.2800 and tested the support zone near 1.2705. The MA (200) H1 moving average (1.2935) is well above the current price, indicating a pronounced downward momentum. The MACD indicator remains in the negative zone, despite a slight narrowing of the histogram, which indicates the continuation of bearish pressure, but with signs of temporary weakening. To continue the downward movement, the price must break through the level of 1.2705, which will open the way to the next support. On the other hand, a return above 1.2800 may be the first signal for a more confident upward correction with a target around 1.2935. The overall picture points to the dominance of sellers, with the current pullback being perceived as a technical respite in the downtrend.

Resistance levels are: 1.2800, 1.2935, 1.3115

Support levels are: 1.2705, 1.2675, 1.2560

The main scenario for the pair's advance suggests a breakout of support at 1.2705 (April 7 low) and a possible decline to 1.2675 (March 4 low)

An alternative scenario implies a breakout of the session high of 1.2800 and there may be an increase to 1.2935 (April 7 high, MA (200) H1)