Yesterday the GBP/USD traded down and closed the day in the red zone near the price of $1.2340. Today it was trading in a narrow range of $1.2310-35, staying close to yesterday's closing price. On the hourly chart, the GBP/USD is testing the strength of the support - the line of the moving average MA (200) H1 ($1.2300). On the four-hour chart, the GBP/USD is still above the MA 200 H4 line. Based on the foregoing, it is probably worth sticking to the north direction in trading, and as long as the GBP/USD remains above MA 200 H4, it may be necessary to look for entry points to buy at the end of the correction.
Resistances levels are at: $1.2410, $1.2445, $1.2515
Support levels are at: $1.2255-65, $1.2150-65, $1.2110
Probably, the main scenario is a resumption of growth towards $1.2410 (Jan 24 high).
The alternative scenario is consolidation below the MA 200 H1 level, followed by a fall to $1.2080 (Jan 12 low).
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