The British pound has recovered above the 1.2300 support level against the US dollar after the pair briefly broke support after yesterday’s Bank of England rate decision. From a technical perspective, sellers failed to invalidate a large inverted head and shoulders pattern on the lower time frames. In the near-term, bulls need to move price above the 1.2420 level to encourage buying towards the 1.2500 level.
The GBPUSD pair is only bearish while trading below the 1.2420 level, key support is found at the 1.2260 and 1.2100 levels.
The GBPUSD pair is only bullish while trading above the 1.2420 level, key resistance is found at the 1.2500 and 1.2600 levels.
