The GBP/USD currency pair has witnessed a notable rebound after testing the crucial 1.2448 support level. The pair has rallied to the 1.2553 level, and this bounce is likely a resumption of the broader uptrend that commenced from the 1.2299 low.
With this development, further gains in the GBP/USD could be on the horizon in the coming days. The next target for the bulls is the 1.2633 resistance level. A decisive break above this level would confirm that the upside move from the 1.2299 low has indeed resumed, potentially opening the door for a move towards the 1.2700 area.
However, it’s important to note that the path higher may not be without obstacles. The initial support for the GBP/USD is currently situated at the 1.2500 level. If the pair encounters selling pressure and fails to hold above this support, it could potentially trigger another decline, leading to a retest of the 1.2448 support.
A breakdown below the 1.2448 level would shift the focus towards the 1.2400 area, followed by the previous low of 1.2299, which could act as a significant target for the bears in the event of a more substantial correction.
In summary, the GBP/USD has staged a notable rebound from the 1.2448 support level, suggesting that the broader uptrend from the 1.2299 low has potentially resumed. The pair is now eyeing the 1.2633 resistance level, with a break above this level confirming the upside move and potentially paving the way for a move towards the 1.2700 area.
However, traders should remain vigilant and closely monitor the price action around the 1.2500 and 1.2448 support levels, as a breakdown below these levels could potentially lead to a more significant correction, potentially targeting the 1.2400 and 1.2299 levels.
Traders and investors are advised to stay agile and adapt their strategies based on the evolving price action in the GBP/USD currency pair.