The British pound sterling pared losses on Friday to pull back above the rising trend line.
Price action is now in a tight range with the 1.3300 technical resistance and the trend line. This could result in a possible breakout in the near term.
With the 4-hour Stochastics oscillator signaling a potential bearish divergence, price action could be looking to correct lower.
Therefore, this could mean that the GBPUSD might be looking to retest the lower support level near 1.3122.
To the upside, to confirm further gains, a strong breakout above 1.3300 is required.
