The British pound continues to recover higher against the US dollar in early week trade, as the GBPUSD pair moves away from extremely over-sold trading conditions. The GBPUSD pair retains an intraday bullish bias while trading above the 1.2700 support level. Caution is advised, as the MACD indicator across the four-hour time frame appears to suggest that sterling may soon fall if short-term buyers fail to break the current daily trading high.
The GBPUSD pair is only bullish while trading above the 1.2700 level, key resistance is found at the 1.2744 and 1.2800 levels.
If the GBPUSD pair moves below the 1.2700 level, key intraday support is found at the 1.2682 and 1.2660 levels.
