The British pound remains weak as the UK is likely to enter another lockdown.
This will limit economic growth and the reaction has been felt in the currency markets.
Prices are now trading near the support level of 1.2750.
The cable failed to test this level during the earlier decline.
The Stochastics oscillator is also bearishly positioned, adding to the downside bias.
If GBPUSD loses the 1.2750 handle, then we expect prices to slide toward the 1.2516 level of support next.
The cable tested this level in late July this year. It would also mean that the currency pair will be erasing all the gains made since then.