This week could be decisive for the GBP/USD pair: on Wednesday (at 18:00 GMT), the Fed's interest rate decision will be published, and on Thursday (at 12:00 GMT), the Bank of England's decision. The further dynamics of the pair will largely depend on the toughness of decisions and related statements.

From a technical point of view, GBP/USD is trading in the short-term and medium-term bull market zones while remaining in a global downward trend.

The breakdown of the key support level 1.2120 (200 EMA on the daily chart) will signal a revival of the general downward trend. The very first signal for the resumption of short positions may be a breakdown of the local and "round" support level 1.2200.

Alternatively, in case of further growth and after the breakdown of the local resistance level 1.2285 (yesterday and 7-week high), GBP/USD will head towards key resistance levels 1.2680 (144 EMA on the weekly chart), 1.2840 (200 EMA on the weekly chart).

A rise above these levels is still unlikely, given the fundamental background, which is not in favor of the pound. However, their breakdown will bring the GBP/USD into the long-term bull market zone.

Support levels: 1.2200, 1.2127, 1.2120, 1.2088, 1.2055, 1.2000, 1.1920, 1.1900, 1.1842, 1.1160, 1.0940

Resistance levels: 1.2270, 1.2285, 1.2300, 1.2400, 1.2440, 1.2500, 1.2600, 1.2680, 1.2700, 1.2800, 1.2840

Trading scenarios

Sell Stop 1.2220. Stop-Loss 1.2310. Take-Profit 1.2200, 1.2127, 1.2120, 1.2088, 1.2055, 1.2000, 1.1920, 1.1900, 1.1842, 1.1160, 1.0940

Buy Stop 1.2310.Stop-Loss 1.2220. Take-Profit 1.2400, 1.2440, 1.2500, 1.2600, 1.2680, 1.2700, 1.2800, 1.2840