Recovers early lost ground, jumps back above 1.2700 mark

GBP/USD attracts some dip-buying near a previous strong resistance breakpoint.
The technical set-up supports prospects for a move beyond the 1.2800 mark.

The GBP/USD pair stalled its intraday downfall near the 1.2645 region and has now moved back closer to the top end of its daily trading range.

The emergence of some dip-buying and a subsequent strong positive move of around 80 pips comes on the back of this week’s bullish breakthrough a symmetrical triangle. This, in turn, supports prospects for a further near-term appreciating move.

Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and have again started gaining positive traction on the 1-hourly chart. This adds credence to the positive outlook amid some aggressive US dollar selling bias.

The pair now seems to have found acceptance above the 1.2700 level, though any further move up is likely to confront resistance near the 1.2745 region. Some follow-through buying should pave the way for a move beyond the 1.2800 round-figure mark.

Meanwhile, the 1.2645 area marks a previous strong resistance breakpoint and should now act as a key pivotal point for short-term traders. Failure to defend the mentioned support might prompt some technical selling and accelerate the downfall.

The pair might then accelerate the corrective slide towards the 1.2600 mark before eventually dropping to test the 1.2540-35 support zone. The latter coincides with a 2-1/2-week-old ascending trend-line or the lower end of the symmetrical triangle.