Overview :
With a bullish background trend, the price of the GBP/USD pair is trying to inflate a little with a slight short-term relapse. At this stage, no trend reversal is in sight. Globally, buyers have the upper hand. Traders could allow themselves to trade long positions (at the time of purchase) as long as the price remains above the support located at the level of 1.2708.
Range trading continues in teh GBP/USD pair and intraday bias stays neutral. On the downside, break of 1.2708 will resume the decline from 1.2622 to 1.2600 support. Sustained trading below there will target 1.2600 cluster support.
A bullish break in the resistance located at the level of 1.2849 would boost the bullish momentum and fuel the basic trend. Then the price could move towards. Then 1.2912 by extension.
It would be safer to wait for a bullish break in the resistance located at 1.2912 before allowing yourself to re trade long positions (at purchase) on the GBP/USD pair. If there is a bearish break in the support located at the level 1.2708 we suggest that you produce a new automated technical analysis. In fact, conditions should have changed.
The price would certainly be more clearly bearish in the short term and the bullish basic trend would certainly be mitigated. However, firm break of 1.2806 minor resistance will argue that pull back from 1.2806 has completed, and bring stronger rebound.
