The pound needs to move through S1 and the $1.1898 pivot to target the first major resistance level (R1) at $1.1949 and Friday’s high at $1.19508. Risk sentiment and hawkish MPC speech will support a return to $1.19.
In the case of an extended rally, GBP/USD is likely to take a push at the second major resistance level (R2) at $1.1992 and $1.20. The third major resistance level (R3) is located at $1.2086.
If it fails to move through S1 and the pivot, the second major support level (S2) at $1.1805 will come into play. But barring a data-driven sell-off in the UK, GBP is likely to avoid below $1.18. S2 should limit the downside.
The third major support level (S3) is located at $1.1711.