The British Pound started an upside correction from the 1.2165 swing low against the US Dollar. The GBP/USD pair broke the 1.2250 resistance area to move into a short term positive zone.
Besides, the pair settled above the 1.2300 level and the 50 hourly simple moving average. The pair traded as high as 1.2384 on FXOpen and it is currently correcting lower below the 1.2350 level.
It seems like the pair recently traded below a short term contracting triangle with support at 1.2320 on the hourly chart. However, there is a strong support near the 1.2300 level, the 50 hourly SMA, and the 38.2% Fib retracement level of the recent rise from the 1.2165 low to 1.2384 high.
Therefore, the pair is likely to bounce back as long as it is above 1.2300. Conversely, GBP/USD might extend its decline towards the 1.2250 support area.
