GBP/USD has been trading downwards in past 24 hours but I found potential end of the downward correction and new wave up. Strong support has been seen at the price of 1.2660. Watch for buying opportunities.
Gray rectangle - support
Yellow rectangle- Resistance
Blue rectangle - Resistance
Middle red line – 20 EMA
The Stochastic oscillator is showing the oversold condition and flip up, which are signs that selling looks risky and that new buying may come. The level of 1.2660 is acting like a strong support and as long as the GBP is trading above that support, I would watch for buying opportunities. RSI oscillator is trying to go again above 50 level, which is another bullish sign. My advice is to watch for buying opportunities since I expect that GBP trade towards the resistance at 1.2766.
