GBP/USD Targets 1.2400 Region Despite Softening Tone

The GBP/USD pair is expected to continue its upward trend with the next noteworthy target at the 1.2400 region.

In our analysis yesterday, we noted that despite the recent gains, there was no significant increase in the upward momentum. However, we also mentioned that there was still some room for GBP to rise to 1.2370 before the possibility of a pullback arose. GBP did reach a high of 1.2362 during London trade before experiencing a slight decline to finish the day at 1.2314 (-0.22%). While the underlying tone has softened somewhat, any expected decrease is likely to be part of a 1.2270/1.2340 range, and a clear break below 1.2270 is deemed improbable.