Overview:
- The GBP/USD pair has broken resistance at 1.2665 which acts as a support this morning. The pair is moving between the levels of 1.2665 and 1.2836. As the trend is still above the 100 EMA, a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Consequently, the level of 1.2836 remains a key resistance zone. Therefore, there is a possibility that the GBP/USD pair will move upwards above 1.2665, which coincides with a ratio 61.8% of Fibonacci retracement. The falling structure does not look corrective. In order to indicate a bearish opportunity above 1.2665. So, buy above this level with the first target at 1.2836 . Moreover, if the pair succeeds to pass through 1.2836, it will move upwards continuing the bullish trend development to 1.2936 in order to test the weekly resistance 2. However, if a breakout happens at 1.2544, this scenario may be invalidated. Also, you have to note that it is likely to trade in a higher range as long as it remains above the level of 1.2544. Hence, the major support was already set at the level of 1.2544.
