As of writing, GBPUSD is trading near the level of 1.2240, in the zone of the medium-term bull market, above support levels 1.2110 (200 EMA on the daily chart), 1.1930 (144 EMA on the daily chart), 1.1875 (200 EMA on the 4-hour chart).

Since the end of September, the GBP/USD has been developing an upward trend, taking advantage of both the weak dollar and the measures taken by the Bank of England to support the British government bond market.

The breakout of the long-term resistance level 1.2250 (50 EMA on the weekly chart), local resistance level 1.2343 (highs since July and December), 1.2500 (upper boundary of the ascending channel on the daily chart) are on the way. The growth targets are the key resistance levels 1.2810 (144 EMA on the weekly chart), 1.2950 (200 EMA on the weekly chart), separating the long-term bull market from the bear market.

An alternative scenario will be associated with a breakdown of the 1.2110 support level and a further decline deep into the descending channel on the weekly chart.

The breakout of support levels 1.1875, 1.1800 (50 EMA on the daily chart) will confirm this scenario.

In the meantime, above support levels 1.2161 (200 EMA on the 1-hour chart), 1.2100, long positions remain preferable.

Support levels: 1.2200, 1.2161, 1.2100, 1.2000, 1.1930, 1.1875, 1.1800

Resistance levels: 1.2250, 1.2300, 1.2343, 1.2400, 1.2500

Trading Tips

Sell Stop 1.2220. Stop-Loss 1.2310. Take-Profit 1.2200, 1.2161, 1.2100, 1.2000, 1.1930, 1.1875, 1.1800, 1.1575, 1.1500, 1.1400, 1.1300, 1.1200, 1.1160, 1.0940

Buy Stop 1.2310. Stop-Loss 1.2220. Take-Profit 1.2343, 1.2400, 1.2500