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GBP/USD bouncing up nicely, remain bullish

Price is holding really well above our buying area and forming a nice reversal pattern. We remain bullish looking to buy above major support at 1.2703 (Fibonacci extension, Fibonacci retracement, horizontal pullback support, bullish divergence) for a push up to at least 1.2886 resistance (Fibonacci retracement, horizontal pullback resistance).

RSI (34) sees major support above the 26% level where we expect a bounce from and also sees bullish divergence signalling that a strong bounce is expected.

Buy above 1.2703. Stop loss at 1.2596. Take profit at 1.2886.

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