Strong bullish sentiment was guiding the GBP/USD exchange rate on Monday. The Pound breached the monthly S2 and the weekly PP mid-session which was followed by a 0.75% surge against the Greenback. This allowed the pair to break out from the dominant four-month channel this morning.
Even if the rate manages to push slightly higher during the following hours, these bullish gains are unlikely to surpass the psychological 1.29 level. The 61.80% Fibonacci retracement is also located there.
Thus, it is more likely that bears try to regain some of their lost positions in this session and thus push the Pound down to the 55– and 200-hour SMAs at 1.2750.
