The British pound sterling is posting strong gains and prices are trading near a four-day high.
The gains primarily come on the back of a weaker US dollar. The gains helped GBPUSD to close above the 1.3000 handle.
However, further gains need to be made to convince investors of the upside bias.
For the moment, the key resistance level at 1.3122 will prove to be challenging.
Alternately, there is also a risk of the GBPUSD failing to hold on to the gains.
This could mean that the cable would give back the gains and settle back trading within the 1.3000 and 1.2750 levels in the near term.