Sterling marches higher after the European Union took a softer stance on Brexit.
Those who look for technical trend-reversal signals will point to a candle pattern.
A textbook hammer candlestick (bullish) signal from Sept.
3 and 4 warned that the 1.1959 low could be a base and bear-trend low point .
The short squeeze that ensued removed major resistance levels including weekly trend resistance line, 10- and 21-WMA, a daily cloud and, last session, the 100-DMA.
There have been some modest adjustments en route to today's 1.2582 high, and the pound's 5.2% appreciation could argue for a deeper correction.
But if the Brexit headlines continue to soften hard- or no-deal concerns, sterling bulls will target the 200-DMA at 1.2737 and a weekly cloud twist out to Oct.
25 at 1.3005-13.
For retracement points, the 38.2% and 50% Fibonacci levels off the 1.4377 April high and 1.1959 September low are at 1.2883 and 1.3168 respectively.
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GBP/USD Daily Candlestick Chart: Click here