Anna 
At the beginning of the week on Monday, the Pound Sterling (GBP) struggled against the US Dollar (USD), with the GBP/USD pair managing to maintain its position above the 1.2600 level.
The Pound Sterling faced downward pressure amidst a negative shift in risk sentiment, despite easing tensions in the Middle East. Meanwhile, the US Dollar grappled with limited traction amid market nervousness ahead of Wednesday’s release of the US Consumer Price Index (CPI) data.
From a short-term technical standpoint, GBP/USD appears vulnerable, poised to extend its downward trajectory following a break from the rising channel observed a couple of weeks ago.
The 14-day Relative Strength Index (RSI) indicator indicates a downward trend below the midline, currently hovering near 46.50, suggesting a bias in favor of sellers.
For Pound Sterling sellers to establish a sustained downtrend, they would need to secure a daily candlestick closing below the horizontal 200-day Simple Moving Average (SMA) at 1.2587.
In case of such a downtrend, potential support levels include the April low near 1.2540, followed by the psychological level at 1.2500. Further down, the static support at 1.2450 is likely to test bullish commitments.
However, if buyers defend the 200-day SMA at 1.2587, it could alleviate near-term selling pressure, enabling GBP/USD to mount a recovery towards the static resistance just below the 1.2700 level.
To bolster this rebound, GBP/USD would need to breach the critical confluence resistance at 1.2665, which represents the intersection of the 100-day and 50-day SMAs, potentially paving the way for further gains towards the 1.2700 level.
