FX.co ★ GBP/USD Price Action Suggests Continuation!

GBP/USD rallies after another rejection from a near-term support zone, the current bullish candle signals once again that the perspective is bullish. It is trading at 1.2589, the critical near-term resistance is seen at the 1.2647 level, a valid breakout will confirm a strong momentum.

The USD loses ground versus its major rivals as the USDX has fallen again below the 96.00 psychological level. A USDX's further drop will announce that the USD will resume its corrective phase.

GBP/USD has managed to stay above the upper median line (uml) of the minor descending pitchfork, another higher high, a valid breakout above the 1.2647 will validate a further upside movement.

The 1.2542 - 1.2500 area represents a strong support area, I believe that only a drop below this area will invalidate a further growth in the upcoming period.

• GBP/USD Trading Tips

Buy if GBP/USD closes and stabilizes above 1.2647, the next major upside target is seen at the median line (ML) of the major black ascending pitchfork.

Sell only if the pair drops and closes below the 1.2500 psychological level again, this scenario could take shape only if the USDX starts another leg higher.