The British Pound started a downside correction from the 1.2450 resistance zone against the US Dollar. The GBP/USD pair declined below the 1.2350 level, but it remained well bid near 1.2260.
The pair is now rising above the 1.2300 level, but it is still below the 50 hourly simple moving average. It is now consolidating near the 1.2325 level, with an immediate resistance at 1.2340 on FXOpen.
The first major resistance is near the 1.2365 level and a trend line on the hourly chart. If there is a clear upside break above the 1.2365 resistance, the pair could rise steadily towards the 1.2400 level in the near term. The next major resistance sits near the 1.2450 level.
On the downside, the first major support is near the 1.2300 level. The main support is forming near the 1.2265 level. A break below the 1.2265 support could push the pair towards the 1.2220 support.