The GBP/USD pair continues to be the only instrument of the Forex market, which does not obey the general market trends. While China-US trade wars and political signals in various European countries continue to dominate the high-risk asset prices on the world stage, these factors have hardly affected the pound recently, since Brexit remains the only driving force of the GBP/USD price momentum.
The British pound rose yesterday in the London markets following optimistic employment data. In addition, the pair was based on positive price behavior in the US markets, as the controversial news regarding trade negotiations between China and the US lowered US stock prices, which led to a decline in the dollar in the broad market.
GBP/USD Technical Analysis
The British Pound formed a solid support base near the 1.2860 level and later traded higher against the US Dollar. The GBP/USD pair climbed above the 1.2880 and 1.2900 resistance levels to start a decent uptrend.
The pair even settled above the 1.2900 level and the 50 hourly simple moving average. Moreover, there was a break above a major bearish trend line with resistance at 1.2920 on the hourly chart.
A high was formed at 1.2974 and the pair is currently consolidating gains. An initial support is near 1.2945 and the 23.6% Fib retracement level of the last wave from the 1.2855 low to 1.2974 high.
If there is a downside correction, the GBP/USD pair is likely to find a solid buying interest near the 1.2945 and 1.2925 support levels. On the upside, initial resistance is at 1.2975, followed by 1.3000.