GBP/USD may rise 21 - 31 pips

Our pivot point is at 1.2713.

Our preference

Look for a drop towards 1.2713 before a bounce.

Alternative scenario

The downside breakout of 1.2713 would call for 1.2696 and 1.2686.

Comment

The RSI is above its neutrality area at 50. The MACD is below its signal line and negative. The penetration of 50 on the RSI would call for further downside. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.2729 and 1.2729).

Supports and resistances

1.2781 **

1.2771 *

1.2761 **

1.2751

1.2730 last

1.2720

1.2713 **

1.2696 *

1.2686 **

Number of asterisks represents the strength of support and resistance levels.