The British Pound started a strong increase from the 1.3100 support zone against the US Dollar. The GBP/USD pair broke the 1.3150 and 1.3160 resistance levels to move into a positive zone.
There was also a close above the 1.3220 level and the 50 hourly simple moving average. The pair traded as high as 1.3272 on FXOpen before correcting lower. However, the pair remained well bid near 1.3240. There is also a key bullish trend line forming with support near 1.3240 on the hourly chart.
As long as the pair is above the trend line, 1.3240, and the 50 hourly simple moving average, it could continue to move higher. A clear break above the 1.3280 level might push GBP/USD above 1.3300.
Conversely, the pair could break the trend line support and start a fresh decline towards the 1.3200 level. The next key support is near the 1.3160 level.
