The GBP/USD is still bound to headline risk. Any mention of Brexit strongly moves the pair. At this point his is a pure rectangle range with a bearish rejection.
The GBP/USD is still technically bearish if we look through Weekly to H4 time frame. However, the broader look shows us the major range that has existed throughout since the mid-November. The Cable rejected the W H3 – 1.2850 and dropped towards 1.2755. However a break below 1.2750 is needed for next target – 1.2695. Only a 4h close below that level will spur now moment sellers towards the next confluence target at 1.2634.
On the contrary, another bounce above 1.2880 and the pair will look to reach 1.2940. Above 1.2940 next target is 1.3000 followed by 1.3060. As I said, the headline risk is huge and be careful, protect your profits with profit stops once the price has made it to any of these levels.
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Many green pips,
Nenad Kerkez aka Tarantula FX