We have been seeing that the shorts have been building more and more in the GBPUSD pair for the past week or so, in anticipation of a large fall on March 29 but at the same time, we have been seeing the price move higher and higher towards 1.26. This presented a dangerous combination and we saw a small effect of that yesterday as a combination of dollar strength and fears surrounding the Brexit process pushed the pair from the highs of its range around 1.26 towards 1.2400 and it trades just above that as of this writing.
Currently, GBP/USD is trading at 1.2389, down - 0.47% on the day, having posted a daily high at 1.2464 and low at 1.2378.
The GBPUSD attempted to push lower last week bottomed at 1.2375 but whipsawed to the upside and closed higher at 1.2553. As you can see on my H1 chart below price is moving back above the H1 EMA 200 and inside a bullish channel suggests a short-term bullish view. The bias is bullish in nearest term testing 1.2615 region. Immediate support is seen around 1.2520/00. A clear break below that area could lead price to neutral zone in nearest term testing 1.2450 area.
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