GBP/USD Rallied Sharply

GBP/USD moved sharply to the upside today, rallying for around 100 pips, likely pushed by the fundamentals. That said, the rally was not entirely unexpected, considering the obvious doji candlestick that had formed on the daily time-frame at the support at 1.2770, which was a signal for indecision on the market. Currently the pair is testing the resistance at 1.2885, which coincides with the (MA)89 indicator on the same daily time-frame that previously served as a support level. Should the pair break out above that resistance, there will probably be a further move to the upside towards the next resistance level, which is at 1.2975. On the other hand, should the pair bounce off from 1.2885 and break out below the the support at 1.2770 the next target to the downside will likely be around 1.2600.