• The pound loses ground on USD strength and a risk-off sentiment 
• Speculation about BoE cuts likely to add pressure on the GBP
• A double-top at 1.2730 might trigger a trend change

The Pound is trading lower on Tuesday, weighed by negative market sentiment and a somewhat stronger USD with bears looking at the 1.2600 support area.

Speculation about BoE rate cuts

Beyond that, UK interest rate swaps have boosted speculation that the BoE might start cutting interest rates in June 2025, which is giving further hope for Pound sellers.

In the calendar today, the final of the UK Global/CIPS Services PMI and, in the US, the ISM Services PMI and October’s JOLTS Job Openings will provide the fundamental framework.

Potential double top at 1.2730

The technical picture shows the pair losing bullish momentum with price action crossing below the 4h 50 SMA aiming to 1.2600. A clear move here would trigger a double-top at 1.2730 increasing pressure towards 1.2517 ahead of the measured target, at 1.2460.

On the upside, immediate resistance lies at 1.2645 and 1.2730.

Technical levels to watch