The British pound rebounded strongly from the 1.2770 area against the US dollar last week, as the pair started to attract buying interest from depressed levels.
GBP to USD analysis shows that the 1.3000 resistance area holds the key for further upside advancement this week.
GBP/USD medium-term price trend
Sterling bulls struggled to reclaim the 1.3000 handle last week, despite numerous attempts to overcome this key psychological benchmark.
GBP/USD technical analysis highlights that a breach of the 1.3000 level exposes further upside towards the 1.3150, and possibly the 1.3280 level.
The daily time frame shows that the neckline of a large head-and-shoulders pattern is capping rallies, and is found around the 1.3000 level.
If bulls can stabilize the price above the 1.3000 level, then medium-term buyers are likely to push the pair higher.
Key trendline support on the daily time frame is located around the 1.2940 level. Below the 1.2940 level the 1.2880 and 1.2770 areas offer the foremost technical support.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair only has a bearish short-term trading bias while the price trades below the 1.2950 level.
The four time frames show that an inverted head-and-shoulders pattern is projecting further upside gains.
Technical analysis highlights that the GBP/USD pair may rally towards the 1.3140 area if the pattern is activated.
GBP/USD bulls need to rally the price above the 1.3000 level this week to activate the mentioned bullish price pattern.
GBP/USD technical summary
GBP to USD analysis shows that the pair is likely to continue its recent recovery if bulls can stabilise the price above the psychological 1.3000 level.
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