GBP/USD has been trading higher recently with a new leg up last week to 1.2680 where we called end of a five wave recovery from end of October. Notice that market then turned south but only with three waves that found a support yesterday at 1.2300 area. We can see a nice bounce from a trendline support which sent price back to 1.2500. It looks like an impulse so more gains may follow in days ahead, but after a pullback which in fact can be interesting to join the trend for a new leg up to 1.2670.

GBP/USD, 4H