Overview:

• The GBP/USD pair faced strong support at the levels of 1.2478 and 1.2407 this week. However, the minor support is seen at the level of 1.2578, and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.2578, the market will indicate a bullish opportunity above the new strong support level of 1.2578 (the level of 1.2578 coincides with the ratio of 78.6% Fibonacci). Moreover, the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above 1.2578 so it will be good to buy at 1.2578 with the first target of 1.2635. It will also call for an uptrend in order to continue towards 1.2706 to retest the double top again. The weekly strong resistance is seen at the level of 1.2706. On the other hand, the stop loss should always be taken into account. Hence, it will be reasonable to set your stop loss at the level of 1.2407.