The British pound is slowing drifting lower, but amid the consolidation, we see a higher low forming.
This potentially suggests that the currency pair is forming a bottom.
Adding to this view is the strong bullish divergence we are seeing on the Stochastics oscillator.
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The set up looks to a possible breakout to the upside. However, prices must breakout convincingly above the 1.2277 level where resistance looks strong.
A close above this level will set the stage for further gains to come.