Since the middle of last month, the GBP/USD has been developing an upward trend, correcting from the more than 2-year lows reached near 1.1760.
The pair is trading above the important short-term support level 1.2128 (200 EMA on the 1-hour and 4-hour charts), which creates preconditions for further growth towards key resistance levels 1.2640 (144 EMA on the daily chart), 1.2800 (200 EMA on the daily chart).
Below these resistance levels, the GBP/USD remains in the long-term bear market zone.
So far, its growth is limited by the nearest resistance level of 1.2205 (50 EMA on the daily chart).
At the same time, tomorrow's meeting of the Bank of England and its decision on the interest rate, which will be published at 11:00 (GMT), should be considered.
Therefore, a breakdown in one direction or another may determine the further direction of the GBP/USD dynamics.
A breakdown of the support level 1.2128 will lead to the end of the upward correction and the resumption of the downward dynamics of the GBP/USD.
Alternatively, and after the breakdown of the resistance levels 1.2205, 1.2293 (local high), GBP/USD will head towards the nearest resistance levels 1.2600, 1.2640.
Support levels: 1.2128, 1.2100, 1.2000, 1.1900, 1.1880, 1.1800, 1.1760
Resistance levels: 1.2205, 1.2300, 1.2400, 1.2500, 1.2600, 1.2640, 1.2800
Trading Tips
Sell Stop 1.2120. Stop-Loss 1.2220. Take-Profit 1.2100, 1.2000, 1.1900, 1.1880, 1.1800, 1.1760
Buy Stop 1.2220. Stop-Loss 1.2120. Take-Profit 1.2300, 1.2400, 1.2500, 1.2600, 1.2640, 1.2800
