Overview:
The GBP/USD pair continues to move upwards from the level of 1.2699. Today, the first support level is currently seen at 1.2699, the price is moving in a bullish channel now.
We expect the price to set above the strong support at the level of 1.2699; because the price is in an uptrend since yesterday. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bullish trend.
Hence, the GBP/USD pair is probably continuing to trade in a bullish trend from the new support level of 1.2699.
According to the previous events, we expect the pair to move between 1.2699 and 1.3011. Also, it should be noted major resistance is seen at 1.3122, while immediate resistance is found at 1.3011. Then, we may anticipate potential testing of 1.3011 to take place soon.
Moreover, if the pair succeeds in passing through the level of 1.3011, the market will indicate a bullish opportunity above the level of 1.3011. A breakout of that target will move the pair further upwards to 1.3122.
This would suggest a bullish market because the 100-moving avergae is still in a positive spot and does not show any trend-reversal signs. The pair is expected to rise higher towards at least 1.3122 so as to test the daily resistance 2.
However, it would also be sage to consider where to place a stop loss; this should be set above the second support level of 1.2503.
