The British Pound started a strong upward move above the 1.2400 resistance area against the US Dollar. The GBP/USD pair even surpassed the 1.2500 resistance area to move into a positive zone.
The pair is now trading above the 1.2600 level and the 50 hourly simple moving average. It traded as high as 1.2647 and it is currently correcting lower below 1.2620 on FXOpen.
On the downside, there is a major support forming near the 1.2585 level, a connecting bullish trend line on the hourly chart, and the 50% Fib retracement level of the recent move from the 1.2523 low to 1.2647 high.
As long as the GBP/USD pair is above the trend line support, it is likely to continue higher towards 1.2650 and 1.2680. If not, there is a risk of a sharp downside correction towards the 1.2500 level.
