The GBPUSD maintained a bullish momentum yesterday, topped at 1.2178 level and bottomed at 1.2063 levels. This development leaves the pair targeting the 1.2225 levels. A halt is likely, the rise from 1.2014 may end here. Anyway; it may test 1.2178 levels before attempts to break above 1.2225 levels. Above 1.2225 aims the 1.2280 levels. Furthermore, resistance comes at 1.2345/1.2380 levels.
Notes: 1. The pair may spike to 1.2225 levels before the next big fall…2. A failure to hold above 1.2178 levels on a daily closing basis could mean a return to 1.2063 levels. 3. A consolidation within 1.2123/1.2178 range for a couple of days, will suggest a sudden fall.
On the downside, a failure to hold above the 1.2178 levels on a daily closing basis could mean a return to 1.2123/1.2063 levels. It should turn higher from here. However; a cut below 1.2063 will restore the downside momentum and suggest a lower leg below 1.2000 levels.
In conclusion: The GBPUSD sees light bullish move above 1.2063/1.2123 levels with caution.
Support: 1.2123, 1.2063, 1.2000, 1.1950, 1.1900, 1.1850
Resistance: 1.2178, 1.2225, 1.2280, 1.2340, 1.2380, 1.2450
Key data/events which may affect GBPUSD today:
FOMC Meeting Minutes today at 18:00 GMT.