The British pound rose above 1.2843 for the first time in a year in Wednesday's Asian session, powering on to fifteen-month highs before returning some ground, as investors remain convinced that the Bank of England has perhaps more work to do than any major central bank if it's going to contain inflation.
The GBP/USD pair will continue to rise from the level of 1.2843. The support is found at the level of 1.2843, which represents the 61.8% Fibonacci retracement level in the H4 time frame. The price is likely to form a double bottom. Today, the major support is seen at 1.2843, while immediate resistance is seen at 1.3000.
Accordingly, the GBP/USD pai pair is showing signs of strength following a breakout of a high at 1.3000. So, buy above the level of 1.3000 with the first target at 0.9990 in order to test the daily resistance 1 and move further to 1.3078. Also, the level of 1.3100 is a good place to take profit because it will form a double top.
Amid the previous events, the pair is still in an uptrend; for that we expect the GBP/USD pair to climb from 1.2843 to 1.3000 today. At the same time, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2843, a further decline to 1.2803 can occur, which would indicate a bearish market.