Karen Jones, analyst at Commerzbank, points out that the GBP/USD pair continues to hold and bounce from the short term uptrend at 1.3002, after the market last week challenged the 1.3363 July 2018 high, reaching 1.3382 before failing.

“The new high has been accompanied by a divergence of the daily RSI and we would allow for some near term consolidation ahead of further upside attempts. Overall target remains the 1.3574 200 week MA. Below the 1.3002 short term uptrend lies the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772. Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”