The GBPUSD has taken back nearly 38.2% of the sharp move higher on Brexit hopes. That hope was dashed this weekend when EUs Barnier reportedly told EU diplomats at the UK's latest proposals on setting the Irish border chapter was still unworkable.
Technically, the run hgher last week already set a key resistance target against the 200 day MA at 1.2706 area, and backed off in respect into the close.
Today, the pair opened marginally lower and has stepped lower.
The price moved to the 38.2% of the move up from last week's low at 1.25107 (the low reached 1.2515 where buyers came in. The area is also home to swing levels in the 1.25053 to 1.25256 area (see red numbered circles.
The rebound off that area, has the price moving back towad the September high at 1.2581 (the price just reached 1.25793) A move above that area would/should open the door for more upside momentum.
The new levels are being defined in early NY trading.