GBP/USD bearish zig zag continues
The GBP/USD is expectedly dropping from 1.3120 zone but it is getting close to its support at 1.2914. 1 hour momentum below or 4h close below 1.2914 could tank the pair towards 1.2870 where further weakness could open the door to 1.2785. ATR shows a confluence at 1.2870 so this is the first level to watch if weakness continues. POC zone shows where the cable could sell on a retracement. 1.3015-40 is the zone (H3, EMA89, trend line, historical sellers, 61.8) where GBP/USD could reject towards 1.2870 if we see a retracement to the upside.
Either way, cable is bearish and these are 2 possible scenarios in short term.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets.