In view of Karen Jones, analyst at Commerzbank, GBP/USD pair is consolidating/correcting higher very near term after last week the market sold off to the base of its short term channel at 1.2011 and the January 2017 low at 1.1988.

“Last weeks low was 1.2080, but given the 13 count on the daily chart we would allow for this to hold the initial test and prompt a near term rebound. Below here lies the 1.1491 3 rd October low (according to CQG). Rallies, if seen, should struggle circa 1.2320. It stays negative while contained by its 2 month downtrend at 1.2437 today. Above the downtrend this would introduce scope to the 55 day ma at 1.2536 and the June high at 1.2784. Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”