The GBP/USD pair broke resistance at 1.2709 which turned into strong support yesterday. This level coincides with 61.8% of Fibonacci retracement which is expected to act as major support today.
The GBP/USD pair increased within an up channel.Closing above the Pivot Point (1.2709 ) could assure that the GBP/USD pair will move higher towards cooling new highs.
the bulls must break through 1.2768 in order to resume the up trend.
Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside.
Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily pivot point (1.2709) in the coming hours.
The GBP/USD pair will demonstrate strength following a breakout of the high at 1.2768. Consequently, the market is likely to show signs of a bullish trend.
In other words, buy orders are recommended above 1.2709 with the first target at 1.2847. Then, the pair is likely to begin an ascending movement to 1.2934 mark and further to 1.2966 levels.
The level of 1.2966 will act as strong resistance, and the double top is already set at 1.2847.
On the other hand, the daily strong support is seen at 1.2624. If the GBP/USD pair is able to break out the level of 1.2624, the market will decline further to 1.2486 (daily support 2).
Trading recommendations :
The trend is still bullish as long as the price of 1.2709 is not broken. Thereupon, it would be wise to buy above the price of at 1.2709 with the primary target at 1.2847. Then, the GBP/USD pair will continue towards the second target at 1.2934 (a new target is around 1.2966).
Alternative scenario :
The breakdown of 1.2624 will allow the pair to go further down to the prices of 1.2486.