Downside pressure is expected to lose momentum if Cable regains the 1.2873 level, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

“GBP/USD was rejected last week at the 23.6% retracement at 1.2753. It is possible that this is all the correction that we are likely to see and the market is ready to resume its down move. However we have so far held the 2019 uptrend at 1.2570 and we are not quite ready to abandon the correction higher just yet and cannot rule out an extension to the 38.2% retracement at 1.2873, where we suspect it will stall. It will need to regain this on a closing basis in order to alleviate immediate downside pressure and avert further losses to the 1.2444 December 2018 low. Initial support is the 1.2559 end of May low. Minor resistance lies at the 1.2772 February low ahead of the 1.2865 April low”.