Not counting a few minor breakouts, the pound with the dollar moves in a rather narrow range between 1.2550 support and 1.2800 resistance. This situation has been going on since the end of November. The currency pair has now moved closer to the upper limit of this range. If the bullish breakthrough occurs, the next target for bulls will be the round area of 1.30. The currency pair is now close to the upper limit of this range, and the next target for bulls will be the round area of 1.30.
Another attack on resistance
The pound exchange rate strengthened yesterday evening after the publication of FOMC minutes. GBPUSD managed to reach a significant resistance of 1,2800. This level had already stopped the bulls once during the strong New Year’s Eve appreciation. At that time the supply pushed the price back to around 125.50. As a result of the pound price collapse for a moment, the pair was even 200 pips lower but quickly returned to this range.
As I mentioned in the introduction, if the resistance of 1.28 is broken through, the increases can reach the round area of 1.30 without major obstacles. If you return to bearish play, short positions can be opened with a goal at support. In both cases, you can earn about 200-250 pips.
