The British pound has reversed direction and moved higher against the greenback, due to improving market sentiment and overall US dollar weakness. GBPUSD traders now await the Bank of England this morning, who are set to release the UK Inflation Report. A bullish cup and handle pattern may be forming if price stabilizes above the 1.2900 level.
The GBPUSD pair is bullish while trading below the 1.2850 level, key resistance is now found at the 1.2910 and 1.2958 levels.
If the GBPUSD pair fails around the 1.2900 level, sellers may test towards the 1.2850 and 1.2828 levels.
