GBP/USD to hold 1.2550 as a solid support, or is reversal intact?

Currently, GBP/USD is trading at 1.2613, down -0.49% on the day, having posted a daily high at 1.2685 and low at 1.2570.

GBP/USD has taken a hit and has extended the downside from the 1.2773 highs down to meet the 200 sma on the 1hr sticks at 1.2569. The next target is the channel resistance at 1.2510/30 with a wider target of the channel support at 1.2400, guarding 1.2300 and 18 Nov lows of thereabouts. 

The manufacturing data was a disappointment from the UK as was the industrial production - leading to a sell-off in the pound. However, 1.2550 could be solid support and a bid there and bullish correction could be a bullish signal albeit a fading opportunity on renewed dollar strength if the price cannot penetrate the 1.2800 handle on a break of recent aforementioned highs. The FOMC is due next week as a major catlyst in the greenback while Fed fund rates factors in a 100% chance of a rate hike of 25bps. 

GBP/USD levels

Spot is presently trading at 1.2613, and next resistance can be seen at 1.2614 (Weekly Classic PP), 1.2629 (Daily Classic S1), 1.2639 (Hourly 20 EMA), 1.2657 (Yesterday's Low) and 1.2666 (Hourly 100 SMA). Next support to the downside can be found at 1.2583 (Daily Classic S2), 1.2570 (Daily Low), 1.2566 (Hourly 200 SMA), 1.2522 (Daily 20 SMA) and 1.2509 (Daily Classic S3).