GBPUSD hit its highest level since September 2016 yesterday, touching 1.3158. The pair is expected to maintain its short-term bullish bias as long as it holds above the key psychological level of 1.3000.
Any retracements will find this 1.3000 level as an immediate support but a fall below the July 12 low of 1.2853 would increase the prospects of continued downside to target the June 21 low of 1.2588. At this point the bias will shift to bearish and would suggest a top has been established at the 1.3158 high.
On the other hand, a bounce higher from current levels to clear 1.3158 would bring about a resumption of the recent uptrend with scope to target the next major high from last year in the 1.3400 handle.
The technical picture remains bullish for the short-term as the 50-day moving average crossed above the 200-day MA and momentum indicators such as RSI and MACD are both in bullish territory.