The market showed a positive trend between 1.0400 and 1.0600, which prevented further losses. The increasing lows at 1.1150 and 1.1750 were supported by bulls, indicating a probable continuation of the positive trend above 1.1750. At 1.2340, bears initially resisted the price, but bulls recovered. However, the GBPUSD bulls could not create a new high and instead made a double-top pattern around the same price level. As a result, a negative correction towards 1.1800 happened, which was seen as a good chance to buy with an initial goal of around 1.2350.
Recent fundamental analysis shows that the GBPUSD pair has been backed by the UK's economic recovery and successful vaccination campaign, while the USD has been weakened by low interest rates and inflation concerns. Despite this optimistic outlook, traders should be careful and pay attention to any news that may affect the performance of the currency pair.
If the pair keeps moving up steadily above 1.2340, it could potentially reach 1.2700. However, if the current positive breakout turns out to be a false one, another negative movement towards 1.1750-1.1800 could be expected.
