The British pound, like the euro, started this trading week on a weak note, allowing the US dollar to push the exchange rate significantly lower, bringing it closer to this year’s minimum levels. However, buyers quickly managed to reverse the negative trend, swiftly returning the price to its initial point before the decline.

These sharp downward and upward movements appear to be part of a correction, forming wave 4 within the developing initial diagonal triangle. If this is the case, the current price increase is likely driven by the development of the final wave 5 of this pattern.

There is still some potential for further growth within this wave, making buying the preferred trading strategy.

Recommendations: Buy at 1.2490, SL at 1.2465, TP at 1.2600.