GBP/USD Lower

GBP/USD is trading lower today after an upbeat move to a high at 1.27. The pair started its way up from 1.19865 on Jan 16 and reached its highest point last week only to depreciate on weak UK data. GBP/USD is now trading at 1.2457 and it appears that it might attempt to reach lower levels.

First bear target is seen at 1.24, second target is seen at 1.2250 and major bear target rests at 1.2000.

Sterling bulls, however, do have a chance of going higher if the US dollar fails to keep up with Trump's policy implementations and investors and traders lose confidence in the potential impact of the developments. In that case, bulls will try to go above the resistance at 1.2750 and close at 1.28. Should they get there, the pair has a good outlook of going above 1.30 for the first time since October last year.

Chart: GBP/USD H4