GBP/USD has gathered bullish momentum and climbed to its highest level in more than ten days above 1.2450. The pair is set to stretch higher as long as 1.2430 support holds, FXStreet’s Eren Sengezer reports.

In case 1.2430 fails, 1.24 forms the next key support

“FOMC Chairman Jerome Powell is scheduled to speak at an event organized by the Wall Street Journal. In case Powell reminds investors of the worsening inflation outlook, the risk rally might lose its steam and limit GBP/USD's upside.”

“In case the pair manages to hold above 1.2430, sellers are likely to remain on the sidelines and allow it to continue to push higher.”

“1.25 (psychological level) aligns as interim resistance ahead of 1.2540 (Fibonacci 38.2% retracement of the downtrend that started on April 21). A daily close above the latter could open the door for additional gains toward 1.26 (psychological level).”

“In case 1.2430 support fails, 1.24 (psychological level, Fibonacci 23.6% retracement) forms the next key support.”