The British pound is up over 1.0% on the day following the upside breakout.
Over the last couple of weeks, price action has been trading within the sideways range between 1.2485 and 1.2277.
Price action is likely to test the upside target of 1.2686. However, in the near term, we could see a dip back to the 1.2485 level.
Establishing support at this level could confirm the upside bias. This also raises the potential for a breakout above 1.2686.