GBPUSD was expected to push higher towards 1.2758-1.2863. FOMC meeting minutes yesterday did bring us new momentum on GBP, which is positive sign for further GBP advancing.

Blue rectangle - Support

Yellow rectangle – Resistance 1

Pink rectangle – Resistance 2

Red lines – Downward channel

Black lines- Upward Pitchfork channel

EURUSD did fake breakout of the support at 1.2558 and that action did set the bullish tone that we are seeing now. Price has reached the Pitchfork median line (1.2681) form the most recent swings and confirmed the GBP has entered into cycle mode. RSI and MACD oscillators showed us the bullish divergence, which is another confirmation for further bullish movement. As long as the GBP is trading inside of the most recent upward Pitchfork channel, we will look for buying signals. Breaking above the level 1.2725 would increase chances of moving towards resistance levels at 1.2758-1.2860.