Overview:
- The GBP/USD pair faced strong support at the levels of 1.2336 and 1.2407. However, the minor resistance is seen at the level of 1.2336, and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.2336, the market will indicate a bullish opportunity above the new strong support level of 1.2336 (the level of 1.2336 coincides with the ratio of 38.2% Fibonacci). Moreover, the RSI starts signaling an upward trend, but the trend is still showing strength below the moving average (100). The market is indicating a bullish opportunity above 1.2336 so it will be good to buy at 1.2336 with the first target of 1.2478. It will also call for an uptrend in order to continue towards 1.2578 to retest the double top again. The weekly strong resistance is seen at the level of 1.2578. On the other hand, the stop loss should always be taken into account. Therefore, it will be reasonable to set your stop loss at the level of 1.2249.
