GBP/USD Sighting Upside Break Above 1.2400

Key Highlights

· The British Pound rebounded after it found support near 1.2200 against the US Dollar.

· A key bearish trend line is forming with resistance near 1.2375 on the 4-hours chart of GBP/USD.

GBP/USD Technical Analysis

Looking at the 4-hours chart, the pair traded as low as 1.2204 and rebounded above the 1.2300 resistance. There was a break above the 1.2320 resistance and the 200 simple moving average (green, 4-hours).

However, the upward move was capped by the 1.2400 resistance area. Additionally, the 50% Fib retracement level of the last key decline from the 1.2582 high to 1.2204 low acted as a resistance.

There is also a key bearish trend line forming with resistance near 1.2375 on the same chart. Besides, the 100 simple moving average (red, 4-hours) is currently positioned near the 1.2390 level.

Therefore, a clear break above the 1.2375 and 1.2400 resistance levels is must for a fresh increase towards the 1.2400 level. Conversely, if the pair struggles to surpass the 1.2400 resistance area, it could resume its decline.

The main support on the downside is near the 1.2200 level. If there is a bearish break below the 1.2200 support, the pair could extend its decline towards the 1.2140 level.

GBP/USD

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