The market showed a bullish trend from 1.0400 to 1.0600, which stopped more losses.
Bulls supported the higher lows at 1.1150 and 1.1750, suggesting a possible bullish continuation above 1.1750.
At 1.2340, bears resisted the price at first, but bulls bounced back. However, the GBPUSD bulls failed to make a new high and instead formed a double-top pattern around the same price level.
As a result, a bearish correction to 1.1800 occurred, which was seen as a good opportunity to buy with an initial target of around 1.2350.
Recent fundamental analysis indicates that the GBPUSD pair has been boosted by the UK's economic rebound and successful vaccine rollout, while the USD has been weakened by low interest rates and inflation worries.
Despite this positive outlook, traders should be cautious and watch out for any news that may impact the performance of the currency pair.
If the pair continues to rise steadily above 1.2340, it could potentially reach 1.2700. However, if the current bullish breakout is a false one, another bearish movement to 1.1750-1.1800 could be expected.
