The cable is trading flat for the day, following a pullback after Tuesday’s gains.
GBPUSD pared gains to fall back to the price level of 1.2643. As a result, support is now established at this level, evident from the rebound off this level.
For the moment, GBPUSD will need to break past the recent highs of 1.2768 to confirm further upside.
Gains might stall near the upper resistance level of 1.2813. However, if the bullish momentum prevails, we might expect to see GBPUSD breaking past this level as well.
For the moment, the downside risks continue to fade.