GBPUSD Chart Technical Outlook rally toward 1.2700 could be sold
GBP/USD trade in a corrective channel. It could develop a five-wave structure. Prices have spiked higher to test the channel resistance. There is a chance for a retest in the short term.
I expect mild gains toward 1.2700. The calendar is light today, and I doubt the pair could break higher. The USD index (DXY) has been under pressure lately, although the US Treasury yields have broken higher. I expect USD to follow through to the upside and stocks to trim some of the recent gains. This should limit the rally in the pair.
Resistances: 1.2700, 1.2760
Supports: 1.2610, 1.2580
