The GBPUSD pair has been on a rising trend from 1.0400 to 1.0600, which stopped further declines.
The higher lows at 1.1150 and 1.1750 indicated that the bulls were dominant and could break above 1.1750.
The bulls encountered resistance at 1.2340, but they managed to overcome it. However, they failed to make a new high and instead repeated the same high level, creating a double-top pattern.
This triggered a downward correction to 1.1800, which was considered a good entry point for buyers with a target around 1.2350.
After the recent bullish breakout above 1.2340, latest fundamental analysis shows that the USD has been weakened by low interest rates and inflation worries.
However, traders should be cautious and monitor any news that could impact the pair's performance.
If the pair could continue to rise steadily above 1.2340, it could have reached 1.2700.
But if the current consolidation above 1.2340 ends, another drop to 1.1750-1.1800 could be expected.
