GBP/USD Breaks Key Resistance But Can It Continue Higher?
- The British pound started a decent recovery above 1.2850 against the US dollar.
- GBP/USD surpassed a key bearish trend line at 1.2835 on the 4-hours chart.
GBP/USD Technical Analysis
Looking at the 4-hours chart, the pair gained pace after it surpassed the 1.2800 and 1.2820 levels. During the recovery, the pair surpassed a key bearish trend line at 1.2835.
It even climbed above the 1.2850 resistance and the 100 simple moving average (red, 4-hours). Moreover, the pair broke the 50% Fib retracement level of the last decline from the 1.2975 high to 1.2768 low.
However, there are many hurdles on the upside near 1.2900 and 1.2920. Besides, the 76.4% Fib retracement level of the last decline from the 1.2975 high to 1.2768 low is at 1.2926.
If the pair continues to rise, it could even surpass the 1.2975 high and the 1.3000 resistance. Conversely, the pair could decline and revisit the 1.2850 support area. Any further losses may perhaps push GBP/USD towards 1.2820.