The British Pound started a strong increase above the 1.2600 resistance this week against the US Dollar. The GBP/USD pair broke the 1.2650 resistance level to move into a positive zone.
The pair even settled above the 1.2700 resistance and the 50 hourly simple moving average. A high is formed near 1.2767 on FXOpen and the pair is currently correcting lower.
There was a break below the 1.2740 level, but the pair is holding the 1.2720 support zone. There is also a connecting bullish trend line forming with support near 1.2715 on the hourly chart.
If there is a break below the trend line, the pair could test the 1.2700 support zone or the 50 hourly SMA at 1.2670. On the upside, an initial resistance is near the 1.2750 level, above which the pair might surge towards the 1.2780 and 1.2800 levels.
