Overview :
If the price of Pound Sterling is trading above 1.2583 then possibility of upside targets getting achieved is higher around the level of 1.2783. The basic bullish trend is very strong on the GBP/USD pair, but the short term shows some signs of running out of steam. Nevertheless, a purchase could be considered as long as the price remains above 1.2461.
Crossing the first resistance at 1.2583 would be a sign of a potential new surge in the price. Buyers would then use the next resistance located at 1.2583 as an objective. Crossing it would then enable buyers to target 1.2583. Caution, a return to below 1.2583 would be a sign of a consolidation phase in the short-term basic trend.
If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating reversal of the trend. In the very short term, the general bullish sentiment is not called into question, despite technical indicators being indecisive.
All elements being clearly bullish market, it would be possible for traders to trade only long positions on the GBP/USD pair as long as the price remains well above the price of 1.2461. A bullish break in this resistance would boost the bullish momentum. The buyers could then target the resistance located at 1.2583.
This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 1.2583 (double top), then the market will call for a strong bullish market towards the objective of 1.2615 this week. It is also should be noted, beware of bullish excesses that could lead to a possible short-term correction; but this possible correction would not be tradeable.
On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2432, a further decline to 1.2400 can occur. It would indicate a bearish market. Signals: The trend is still bullish as long as the price of 1.2585 is not broken. Thereupon, it would be wise to buy above the price of at 1.2585 with the primary target at 1.2678. Then, the GBP/USD pair will continue towards the second target at 1.2718.
The breakdown of 1.2585will allow the pair to go further down to the prices of 1.2492. Equally important, the RSI is still signaling that the trend is upward, while the moving average (100) is headed to the upside. Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily pivot point (1.2709) in the coming hours.
The GBP/USD pair will demonstrate strength following a breakout of the high at 1.2768. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 1.2709 with the first target at 1.2847. Then, the pair is likely to begin an ascending movement to 1.2934 mark and further to 1.2966 levels. The level of 1.2966 will act as strong resistance, and the double top is already set at 1.2847.
The daily strong support is seen at 1.2624. If the GBP/USD pair is able to break out the level of 1.2624, the market will decline further to 1.2486 (daily support 2). Trading recommendations : The trend is still bullish as long as the price of 1.2709 is not broken. Thereupon, it would be wise to buy above the price of at 1.2709 with the primary target at 1.2847. Then, the GBP/USD pair will continue towards the second target at 1.2934 (a new target is around 1.2966). Alternative scenario : The breakdown of 1.2624 will allow the pair to go further down to the prices of 1.2486.
