The pair has now approached a key support area on the daily chart

Taking a look at the GBP/USD pair as recent dollar strength has forced the pound lower towards the current level of £1.2557, after seeing highs of almost £1.29 earlier in the year. Looking at the daily chart, we can see that the pair has slid back towards its 200-day moving average. In theory, the 200MA should act as a key support level here, which reads £1.2540. This may make room for some consolidation. However, if the bears were to break below this level, there are further levels of support such as £1.2518 followed by £1.2500. Both are key for the near-term outlook for the pound. A break below £1.25 would be a bearish indication and may result in a longer-term decline for the pair. On the other hand, if there are signs of consolidation in and around the area marked by the white channel, then we could see buyers rushing in. The resistance currently reads £1.2568 followed by £1.2590. A break and close above £1.2590 would allow the bulls to eye up £1.2616 and then the area of £1.2640-£1.2660. The technical indicators are negative, suggesting the bias remains towards the downside. However, the RSI is now floating above oversold conditions, perhaps a stall in momentum is approaching.