The British pound sterling is back on the downside. The declines come as price action failed to capitalize on the bullish momentum from last week.
GBP rose to 1.2642 highs before giving up the gains. Shy of the upside target of 1.2686, the currency pair failed to establish support at 1.2485.
This has now pushed GBPUSD back into the range between 1.2485 and 1.2277.
We expect the consolidation to continue within these levels in the near term.
However, with the Stochastics hinting at a possible hidden divergence, we could see the upper end of the range at 1.2485 being tested.