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Overview:
The GBP/USD pair continues to move upwards from the level of 1.2728. Yesterday, the pair rose from the level of 1.2728 to a top around 1.2780. Today, the first resistance level is seen at 1.2814 followed by 1.2888, while daily support 1 is seen at 1.2728. According to the previous events, the GBP/USD pair is still moving between the levels of 1.2728 and 1.2888; so we expect a range of 160 pips.
Furthermore, if the trend is able to break out through the first resistance level at 1.2814, we should see the pair climbing towards the double top (1.2888) to test it.
Therefore, buy above the level of 1.2728 with the first target at 1.2814 in order to test the daily resistance 1 and further to 1.2888. Also, it might be noted that the level of 1.2888 is a good place to take profit because it will form a major resistance today. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2728, a further decline to 1.2670 can occur which would indicate a bearish market.
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