Overview :
After breaking the first resistance at 1.2089. The GBP/USD pair has set strong support at the levels of 1.2089 because the resistances has become a support on the 15th of June 2022. So, the price has already formed the strong support at the level of 1.2089 and the pair probably will try to approach from it in order to test it again.
However, if the pair fails to pass through the level of 1.2089, the market will indicate a bullish opportunity above the new strong support level of 1.2089 (the level of 1.2089 coincides with the ratio of 23.6% Fibonacci).
Moreover, the RSI is becoming to signal an upward trend, as the trend is still showing strong above the moving average (100) and (50).
Thus, the market is indicating a bullish opportunity above the 1.2089 level so it will be a good sign to buy at 1.2089 or/and 1.2172 with the first target of 1.2264.
It will also call for an uptrend in order to continue towards 1.2342. The daily strong resistance is seen at 1.2342.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.2003.
