Overview:
The GBP/USD pair continues to move upwards from the level of 1.2988. Last week, the pair rose from the level of 1.2865 to a top around 1.3184 but it rebounded to set around the spot of 1.2988. Today, the first resistance level is seen at 1.3060 followed by 1.3184, while daily support 1 is seen at 1.3184 (61.8% Fibonacci retracement). According to the previous events, the GBP/USD pair is still moving between the levels of 1.2988 and 1.3184; so we expect a range of 196 pips in coming days. Furthermore, if the trend is able to break out through the first resistance level at 1.3060, we should see the pair climbing towards the double top (1.3184) to test it. Therefore, buy above the level of 1.2988 with the first target at 1.3060 in order to test the daily resistance 1 and further to 1.3184. Also, it might be noted that the level of 1.3184 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2988, a further decline to 1.2865 can occur which would indicate a bearish market.
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