GBPUSD preparing to rally

The British pound is appearing increasingly bullish against the US dollar as traders anchor price above the 1.2400 resistance level. A technical breakout above the 1.2500 resistance level could provoke a powerful rally towards the 1.2600 technical area. At this stage, sellers need to hold price below the 1.2350 level to take back control of the GBPUSD pair over the short-term.

• The GBPUSD pair is only bearish while trading below the 1.2350 level, key support is found at the 1.2300 and 1.2250 levels. 

• The GBPUSD pair is only bullish while trading above the 1.2350 level, key resistance is found at the 1.2500 and 1.2600 levels.