GBP/USD Technical Analysis
The British Pound started a decent upward move after it broke the 1.2600 resistance area against the US Dollar. As a result, the GBP/USD pair gained momentum above the 1.2620 and 1.2640 levels.
Moreover, there was a close above the key 1.2660 pivot level and the 50 hourly simple moving average. It traded towards the 1.2780 level on FXOpen and recently started a downside correction.
However, the previous resistance near the 1.2650 and 1.2660 levels acted as a strong support. There were many attempts to clear the 1.2650 level, but sellers failed to gain control. The last swing low was near 1.2661 before the price climbed towards the 1.2734 level
It is currently correcting below the 1.2700 level and the 50% Fib retracement level of the last wave from the 1.2661 low to 1.2734 high. However, the 1.2690 level and the 50 hourly simple moving average are acting as a strong support.
Moreover, the 61.8% Fib retracement level of the last wave from the 1.2661 low to 1.2734 high is acting as a support. On the upside, there is a strong resistance forming near 1.2720 and 1.2730.
There is also a connecting bearish trend line forming with resistance near 1.2718 on the hourly chart of GBP/USD. Therefore, a successful break above the trend line and 1.2730 is needed for a fresh increase towards the 1.2780 or 1.2800 level.
On the downside, the main support is near the 1.2650 and 1.2660 levels. If there is a downside break below 1.2650, GBP/USD could decline back towards the 1.2600 support.