GBP/USD has declined sharply after having tested 1.26. As FXStreet’s Eren Sengezer notes, sellers could retain control if the pair fails to reclaim 1.25.

1.2530 aligns as interim resistance

“Later in the session, the PMI data from the US will be watched closely by market participants. In case these data highlight the diverging US-UK economic outlook, GBP/USD could extend its slide.”

“The ascending trend line coming from mid-May stays intact despite the latest decline and forms significant support at 1.25. With a four-hour close below that level, the pair could push lower toward 1.2450 (static level) and 1.2400 (psychological level, 100-period and 50-period SMAs on the four-hour chart).”

“1.2530 (20-period SMA) aligns as interim resistance ahead of 1.2560 (static level) and 1.2600 (psychological level, daily high).”