The British pound appears to have formed an important technical bottom against the US dollar after bouncing from the 1.2830 area. The GBPUSD pair could start to stage a strong recovery now that support has formed, with the 1.3060 level the initial target. Overall, a large bullish pattern is forming on the four-hour time frame and is pointing to a powerful upside rally towards the 1.3700 level.
The GBPUSD pair is only bearish while trading below the 1.3060 level, key support is found at the 1.2900 and 1.2830 levels.
The GBPUSD pair is only bullish while trading above the 1.3060 level, key resistance is found at the 1.3200 and 1.3280 levels.
