Beneath the current levels, the 1.2650 level holds significant support, further reinforced by the imminent arrival of the 50-Day Exponential Moving Average. A breach below this level could potentially lead to a test of the 200-Day EMA, which resides near the 1.2350 level. This area has proven to be important in the past and currently represents the market's bottom.
. Overall, buying on dips remains a favored strategy, barring any significant changes in the fundamental landscape or a notable shift in the Bank of England's stance, both of which appear unlikely in the near term. The British pound's recent rally illustrates its strength in the market. Expectations of higher interest rates in the United Kingdom continue to support the currency's positive performance. The ongoing uptrend suggests the potential for further gains, with the 1.30 level serving as a notable target. Key support levels, such as 1.2650, accompanied by the impending presence of the 50-Day EMA, reinforce the pound's upward trajectory.