The resistance of GBP/USD pair has broken; it turned to support around the price of 1.2496 last week. Thereby, forming a strong support at 1.2496.
The level of 1.2496 coincides with the golden ratio (61.8% of Fibonacci retracement) which is acting as major support today. Another thought; the Relative Strength Index (RSI) is considered overbought because it is above 70.
At the same time, the RSI is still signaling an upward trend, as the trend is still showing strong above the moving average (100), this suggests the pair will probably go up in coming hours.
Accordingly, the market will probably show the signs of a bullish trend. In other words, buy orders are recommended above 1.2524 level with their first target at the level of 1.2624.
From this point, the pair is likely to begin an ascending movement to the point of 1.2624 and further to the level of 1.2687. The price of 1.2687 will act as a strong resistance and the double top has already set at the point of 1.2600.
On the other hand, if a break happens at the support of 1.2465, then this scenario may become invalidated.
