The GBP/USD pair is currently experiencing a tug of war, with mixed sentiment causing it to hover around the 1.2160 level. This hesitancy is driven in part by the negative stance of the stochastic indicator, which has created some downward pressure.
Market participants are awaiting a positive catalyst that could help kickstart the expected bullish trend for the day. The primary target for this upward move is at 1.2297, which is the next key resistance level to watch.
However, it’s essential to remain cautious as the price remains in a fragile state. A decisive break below the support at 1.2130 could derail the upward momentum and pave the way for a return to bearish territory.
In summary, the GBP/USD pair is at a critical juncture, and traders should keep a close eye on both the 1.2130 support and the 1.2290 resistance levels. Depending on how these key levels are breached, the pair may either embark on its expected bullish journey or continue to face bearish pressures.