GBPUSD back inside triangle

The British pound has moved sharply higher against the US dollar during the European trading session after the United Kingdom Manufacturing PMI came in much better than expected. The GBPUSD pair has moved back inside the triangle pattern on the four-hour time frame and only holds an intraday bullish bias while trading above the 1.3100 level. Technical indicators on the four-hour time frame also show that buying momentum is growing.

• The GBPUSD pair is only bearish while trading below the 1.3100 level, key technical support is found at the 1.3045 and 1.2970 levels

• If the GBPUSD pair trades above the 1.3100 level, buyers may test towards the 1.3165 and 1.3225 resistance levels.