The British pound sterling managed to post some modest gains on Monday.
Price action rose to a three-month high to 1.3397 before settling lower. The declines are however stalling near the 1.3300 area.
This level previously served as resistance and following the breakout, a test of support is forming.
As long as the GBPUSD holds above this level, we can expect further upside in the GBPUSD.
The next main target will be the 1st September highs of 1.3482.
In the event that the GBPUSD breaks the support level at 1.3300, then we could expect a further correction down to the 1.3122 level.