GBP/USD has gone into a consolidation phase early Thursday following Wednesday's impressive rally. The pair is set to remain bullish as long as 1.2175 support holds, FXStreet’s Eren Sengezer reports.

1.2350 aligns as next bullish target on a break above 1.2275

“In case the market mood continues to sour, GBP/USD could struggle to stretch higher and vice versa.”

“On the downside, 1.2175 (Fibonacci 23.6% retracement of the latest uptrend) forms strong support. In case the pair drops below that level, bears could show interest and drag cable lower toward 1.2150 (50-period SMA on the four-hour chart) and 1.2100 (Fibonacci 38.2% retracement, 100-period SMA).”

“1.2275 (the end-point of the uptrend) aligns as next important hurdle ahead of 1.2300 (psychological level), 1.2350 (static level) and 1.2400 (psychological level, static level).”