GBPUSD ATTEMPTING TO RECOVER

The British pound is attempting to move back above the 1.2600 level against the US dollar after finding strong dip-buying demand from the 1.2528 support level. The recent recovery has created a bullish higher low, as sellers failed to breach the current yearly trading low. If price moves strongly above the 1.2600 level, the formation of a bullish inverted head and shoulders pattern may start to take shape.

• If the GBPUSD pair continues to trade below the 1.2600 level, sellers will likely press towards the 1.2550 and 1.2528 support levels.

• If the GBPUSD pair trades above the 1.2600 level, key resistance is found at the 1.2657 and 1.2700 levels.