After breaking above 1.2600 on Friday, the cable erased much of its gains and closed the week just above 1.2550, leading bulls to look more optimistically at this week to overcome the key hurdle of the key level 1 ,2600. In case the Pound-Dollar makes a daily close above this level and starts using it as support, buying bulls may remain interested in continuing the upside and surpassing the 1.2632 yearly level. If this level is exceeded, the bulls will target the 1.2827 yearly level as a medium-term target.
Conversely, if the cable fails to consolidate above 1.2550, the bears may start to act. In this case the annual level 1.2474 is the first target to be reached, where a break above it would open the doors to reaching the key 1.2400 level.
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