The British pound sterling is closing with gains and price action could see some modest recovery in the near term.
The bullish engulfing pattern comes after price briefly drifted to a two-month low. The Stochastics on the four-hour chart is currently pushing higher.
Prices will need to break past the previous highs of 1.2780 in order to confirm the short term correction.
To the upside, the big challenge will be the 1.3000 handle. Thus, we could expect the GBPUSD to steady between the said levels in the near term.
To the downside, the declines could resume if GBPUSD fails to hold on to the previous lows near 1.2674.
