The GBP/USD pair set above strong support at the level of 1.2072, which coincides with the 61.8% Fibonacci retracement level.
This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 1.2072 because the trend is still showing strength above it.
Any movement in the US and British economic events determines the exchange rates. Top of the line economic events include GDP, Employment Change, Industrial Production, and Consumer Price Index.
Accordingly, the pair is still in the uptrend from the area of 1.2072 and 1.2185. The GBP/USD pair is trading in a bullish trend from the last support line of 1.2072 towards the first resistance level at 1.2185 in order to test it.
Better than forecast data increases the demand for the related currency and impacts the value of either the Pound or the US Dollar, causing fluctuations in the GBP/USD pair exchange rate.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.2185 and further to the level of 1.2250.
The level of 1.2250 will act as second resistance and the double top is already set at the point of 1.2185.
At the same time, if a breakout happens at the support levels of 1.2072 and 1.2032, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
Conclusion :
Range trading continues in the GBP/USD pair and intraday bias remains upside. Further rise is in favor as long as 1.2072 major support holds. Above 1.2185 minor resistance will target 1.2250 resistance. Sustained break there will bring stronger rebound back to channel resistance. On the downside, below 1.2250 will bring retest of 1.2032 low instead.