- The British pound recovered nicely after trading towards the 1.3000 support against the US Dollar.
- A major bullish trend line is in place with support at 1.3120 on the 4-hour chart of GBP/USD.
GBP/USD Technical Analysis
Looking at the 4-hours chart, the pair surpassed the key 1.3150 resistance level and settled above the 200 simple moving average (4-hours, green) and 100 simple moving average (4-hours, red).
There was a break above the 50% Fibonacci retracement level of the last drop from the 1.3383 high to 1.3004 low. The pair even broke the 1.3200 and 1.3210 resistance levels.
The next key resistance is near the 1.3290 level and the 76.4% Fib retracement level of the last drop from the 1.3383 high to 1.3004 low. However, the main resistance is near the 1.3300-1.3320 zone, which acted as a hurdle for buyers on many occasions earlier.
On the downe, an initial support is near the 1.3150 level. There is also a major bullish trend line in place with support at 1.3120, positioned along with the 200 simple moving average (4-hours, green).