GBP/USD Price Analysis: Cable is targeting an important resistance zone at 1.2669

• GBP/USD has moved within a 149 pip range in an impressive session on Monday.
• A break of the 1.2669 resistance would take the pair to its higher level since 16th June.

GBP/USD 1-hour chart

GBP/USD has made a great move to the upside at the start of the week as GBP became the currency of choice against the USD. Tomorrow marks the start of the next round of Brexit discussions and the last few times GBP has been hit during negotiations. Today UK PM Boris distanced himself in the war of words with China after over the weekend the Chinese seemed to be getting agitated with the UK's involvement in the Hong Kong debacle. 

Looking closer at the chart, the price looks like it could test the resistance zone above the current level marked in black. If the level does break then it could be a good coup for the bulls. It seems this is more about USD weakness rather than GBP strength. On the downside, the purple internal trendline could provide some support while the orange line at 1.2620 is firmer. 

The indicators are also looking pretty bullish at the moment. The MACD histogram is green but the signal lines do look like they may cross over (bearish). The Relative Strength Index is in the overbought area but it does look like it may pullback slightly. The indicator can stay overbought for some time so there have been occasions where the Relative Strength Indicator oscillates around the 70 line. If this did happen the pair could see more upside in the coming sessions.

Additional levels