GBP/USD: bulls attacking bear's thirst for the downside - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair recovered from a daily low of 1.3033 achieved on dollar's early demand, having rallied up to 1.3156 to settle around 1.3130 at the end of the US session.

Key Quotes:

"There were no macroeconomic news coming from the UK and in fact, there will be no relevant releases until next Friday, when the kingdom will publish its preliminary Q2 GDP figures. The Pound however, surged on diminishing fears over the economic consequences of the Brexit, following much better-than-expected data released last week.

Technically, the upside is favored as in the 1 hour chart, the price is now above a bullish 20 SMA, currently around 1.3055, while technical indicators extended their advance within positive territory, now at fresh daily highs.

In the 4 hours chart, the price is also above a now bullish 20 SMA,  although the technical indicators have turned lower, with  the RSI indicator losing upward strength around 60 and the Momentum indicator heading lower below its 100 level and limiting chances of a stronger rally.  Nevertheless, the upside remains favored, with an acceleration above the mentioned daily high required to confirm a retest of the 1.3200 region."