GBP did break out neckline of the inverted head and shoulders pattern and it seems also that downward correction has ended, which is good sign for the further upside.

Yellow rectangle – Support

Green line – Broken neckline

Green rectangle – Resistance and upward target

GBP gave us a buy signal after breaking above 1.2200 and it is confirming the breakout by successful testing of support (yellow rectangle). Now GBP could trade higher towards $1.2390. MACD is showing us strong upward momentum in the background, which is very good confirmation for our long bias The breakout of the neckline of head and shoulders pattern was the key and there is decent space for more upside movement. Watch for buying opportunities with the target at the price of 1.2388 (green rectangle).