The British pound managed to rally on the last leg as price broke past the price level and target of 1.2643.
The currency pair is now at a three-month high following a softer USD.
While there is scope for further gains to continue, we now expect a pullback in the making.
The initial support level near 1.2424 – 1.2343 will be ideal for prices to retrace to.
This will also validate the upside bias and potentially set up GBPUSD for a bullish continuation.
Alternately, if prices continue to move higher, then we have the next price level near 1.3122 that will be the upside target for the pound sterling.