The British pound sterling continues to trade weaker with price briefly testing the lows, just a few pips above the 1.3000 level.

Price action has now comfortably settled within 1.3122 and 1.3000. This means that a breakout from this range will set the course of direction for the trend.

To the downside, the longer-term trend line could act as a dynamic support. But this comes around the 1.2900 level.

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To the upside, it is clear that a top has formed after GBPUSD failed to breakout higher.

The Stochastics oscillator is positioned to the upside which could signal a near term move back to the 1.3122 level of resistance.

With the weekly candlestick showing signs of a possible correction, the support level near 1.3000 gains even more importance.


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