The British pound failed to hold onto its recent upside momentum against the US dollar last week, with sterling reversing sharply from the 1.2500 level.
GBP to USD analysis shows that the 1.2150 level is a major technical area to watch this week.
GBP/USD medium-term price trend
Sterling failed to hold above the 1.2500 level last week as traders moved back into the safety of the greenback, amidst a wave of new global coronavirus infections.
GBP/USD technical analysis shows that the 1.2150 level is likely to act as a major pivot point for the pair this week.
If bulls can successfully defend the 1.2150 level, the GBP/USD pair could bounce back towards the 1.2500 to 1.2600 technical area.
A break below the 1.2150 level could see the GBP/USD pair falling towards the psychological 1.2000 level.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair has a short-term bearish bias while it trades below the 1.2520 level.
Drawing a Fibonacci retracement from the March 27 high to the March low, the 50 per cent retracement level is found around the 1.1955 level.
Should we see price weakening below the 1.2200 to 1.2150 technical region it is possible that the 50 per cent retracement level of the mentioned sequence may be tested this week.
A recovery above the 1.2385 level may also improve short-term sentiment towards the GBP/USD pair.
It is also noteworthy that the MACD indicator is still showing bullish MACD divergence extending towards the 1.2600 level.
GBP/USD technical summary
GBP to USD analysis shows that the GBP/USD pair could fall towards the 1.2150 technical area this week. Bulls must defend this key technical level to avoid a stronger decline.