The market initiated a bullish trend between levels 1.0400-1.0600, which could potentially prevent any further decline.
Bulls continued to defend the rising bottoms around 1.1150 and 1.1750, resulting in an anticipated bullish continuation above 1.1750.
At 1.2340, initial bearish rejection was observed before a bullish bounce occurred.
However, the GBPUSD bulls failed to reach a new high, and instead formed a double-top pattern around the same price level.
This resulted in a bearish pullback towards 1.1800, which was considered a valid buying opportunity with an initial target of approximately 1.2350.
Recent fundamental analysis suggests that the UK's economic recovery and successful vaccination campaign have supported the GBPUSD pair, while low interest rates and inflation concerns have pressured the USD.
Despite this optimistic outlook, traders must remain cautious of any news that could impact the currency pair's performance.
If the pair persistently trends upwards above 1.2340, it could advance further towards 1.2700. However, if the current bullish breakout proves to be a trap, another bearish movement towards 1.1750-1.1800 should be expected.
