The British Pound started a decent correction from the 1.2880 support area against the US Dollar. The GBP/USD pair recovered above the 1.2900 and 1.2920 resistance levels on FXOpen.
Besides, the pair settled above the 1.2920 level and the 50 hourly simple moving average. Moreover, there was a break above a major bearish trend line with resistance at 1.2927 on the hourly chart.
The pair tested the 1.2970 area and it currently showing a lot of positive signs. If it continues to rise, the next stop for the bulls could be the 1.3000 barrier. Any further gains might initiate a strong rally.
Conversely, GBP/USD might fail to continue above 1.2970 or 1.3000 and start a fresh decrease. An initial support is near the 1.2920, below which the pair is likely to decline heavily in the near term.
