GBPUSD bulls step in

The British pound has staged a powerful upside breakout against the US dollar currency after dip-buyers defended the pairs 50-day moving average. The GBPUSD pair now has the potential to rally towards the 1.2500 and possibly the 1.2600 resistance level. Only a weekly price close below the 1.2240 level would cause GBPUSD traders to turn bearish over the medium-term.

• The GBPUSD pair is only bearish while trading below the 1.2240 level, key support is found at the 1.2160 and 1.2075 levels.

• The GBPUSD pair is only bullish while trading above the 1.2240 level, key resistance is found at the 1.2420 and 1.2500 levels.