GBP/USD technical analysis: The British Pound remains well supported on dips
|The British Pound started a solid upward move from the 1.2500 support area against the US Dollar. The GBP/USD pair climbed above the 1.2600 and 1.2750 resistance levels to move into a positive zone.
The pair even surged above the 1.2850 level and traded close to the 1.2870 level on FXOpen. A high was formed at 1.2865 and the pair is currently correcting lower. An initial support is near the 1.2825 level and the 23.6% Fib retracement level of the last wave from the 1.2710 low to 1.2865 high.
On the downside, there are many supports near the 1.2800, 1.2785 and 1.2750 levels. The main support is near the 50 hourly simple moving average and the 50% Fib retracement level of the last wave from the 1.2710 low to 1.2865 high near 1.2785.
If there is a break below the 50 hourly SMA, the price may decline towards the 1.2750 and 1.2720 support levels. On the upside, an initial resistance is near the recent high at 1.2865.
Moreover, there is a connecting resistance trend line in place at 1.2875 on the hourly chart of GBP/USD. A break above the trend line and 1.2880 could push the pair above the 1.2900 resistance in the coming sessions.
Overall, GBP/USD remains well supported on dips if there is a downside correction towards 1.2800 or 1.2785.
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