The pair is consolidating its price action above the 1.2875, after several days trapped in a narrow range across the board. With this move, we can expect further rallies to test the resistance zone of 1.3029 in the near term. However, caution should be taken in coming hours, as this can be a false breakout. If a pullback happens at the current stage, the next support will be located at the 200 SMA (H1 chart).
H1 chart's resistance levels: 1.2875 / 1.3029
H1 chart's support levels: 1.2728 / 1.2652
Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2875, take profit is at 1.3029 and stop loss is at 1.2723.
The material has been provided by InstaForex Company - www.instaforex.com