Key Highlights · The British Pound was rejected from the 1.3100 support area against the US Dollar. · There was a break above a major connecting bearish trend line with resistance at 1.3230 on the 4-hours chart of GBP/USD. · GBP/USD Technical Analysis The British Pound corrected lower this past week below 1.3150 against the US Dollar. However, the GBP/USD pair found a strong buying interest near 1.3100, resulting in a sharp upward move.
Looking at the 4-hours chart, the pair jumped higher with back-to-back bullish candles above the 1.3150 resistance. The upside move was such that the pair broke the 1.3220 resistance and settled above the 100 simple moving average (red, 4-hour).
There was also a break above the 50% Fib retracement level of the last decline from the 1.3362 high to 1.3102 low. It seems like the pair moved back in a bullish zone and it could rise further towards the 1.3320 level.
If there is a downward correction, the pair may perhaps find support near the 1.3210 level and the 100 SMA.