The British pound is on track to test the resistance level of 1.2858. This comes after prices briefly tested the support level of 1.2277.
With support forming here, a breakout above the previous local highs of 1.2486 will confirm the move higher.
In the event that prices fail to push higher, we expect a retest of the 1.2277 region. Further to the downside, a close below 1.2277 will signal a move to the lower support of 1.1878.