• Bullish engulfing candle Monday into Tuesday confirmation

• Stalling early Wednesday but reversal risk is holding

• A break above 1.2360 needed to trigger a bullish resumption

• Fourteen day momentum remains negative and RSI is falling

• Looking for higher levels while 10-day moving average supports at 1.2258

• A buy on dips strategy favoured for a run to 1.2575 Jan. 7 high

• For GBP/USD trader see GBP/USD Trader: [page:2338]
GBP/USD daily candle chart:

(Peter Stoneham is a Reuters market analyst. The views expressed are his own.)