The pound sterling rose briefly late last week to test the 1.3300 level. But with prices being rejected at this level, the currency pair was pushed lower.
Finding support off the rising trend line, GBPUSD managed to close just a few pips away from 1.3300 once again.
The consolidation near this level could signal a possible breakout in the near term.
Above 1.3300, GBPUSD will need to rise above the previous highs at 1.3467.
To the downside, the breakdown of the trend line could see price testing the 1.3122 level of support.
While we expect this support level to hold, a close below 1.3122 could signal a move to the lower support near 1.3000.