GBP/USD bulls eye a retest of 1.2800GBP/USD remains in a strong uptrend on the daily chart, although prices began retracing on June 16th. We're now looking for momentum to revert to its bullish trend.
Whilst prices failed to hold above May high, they're now back above them having formed a 3-day bullish reversal pattern (Morning Star). A small bearish inside day formed due to the 3-day weekend in the US, and prices remain beneath a retracement line. But bulls could seek evidence of a swing low around support zones such as 1.2664/67 (weekly pivot point/May high) or the 1.2575 (volume node and lower 1-week implied volatility band).
We're targeting the 1.800/50 area near cycle highs and the upper implied volatility band.
