GBPUSD bulls cheer broad US dollar weakness to attempt another confrontation with the key 1.2690/1.2700 resistance area including 200-day SMA and a falling trend line from December 2019. Considering the quote's recent recovery moves, coupled with the overall declines of the greenback, not to forget a two-week-old rising trend line, the Cable is expected to stretch its run-up towards breaking the key resistance. However, 61.58% Fibonacci retracement of its broad downside since December 13, 2019 and June month high, respectively around 1.2710 and 1.2815, could add filters to the pair's further rise.
On the downside, the quote's declines below an immediate support line near 1.2600 can aim for June 24 top near 1.2540. Though, the pair's additional declines could be tamed by 50% Fibonacci retracement level of 1.2460, if not then a two-month-old rising trend line, at 1.2300 now, becomes the key to follow. It should, however, be noted that the pair's sustained downside below 1.2300 will challenge May month bottom close to 1.2075.