GBP/USD Price Analysis: Rallies to near 3-week tops, around 1.2570 region

• GBP/USD gained some strong intraday positive traction and surged through mid-1.2500s.
• The bias has shifted back in favour of bulls and supports prospects for additional gains.

The GBP/USD pair continued scaling higher and shot to near three-week tops, levels beyond mid-1.2500s during the early North American session.

The early slide attracted some dip-buying near the 1.2460 region, a support marked by the 38.2% Fibonacci level of the 1.2813-1.2252 downfall. The strong intraday momentum took along some short-term trading stops near the key 1.2500 psychological mark.

A subsequent move lifted the pair beyond last week’s swing high, around the 1.2530 region, which coincides with the 50% Fibo. level. Some follow-through buying now seems to have shifted the near-term bias back in favour of bulls and supports prospects for additional gains.

Bulls might now aim to test the 61.8% Fibo. level, around the 1.2600 mark, which if cleared decisively will negate any near-term bearish bias and set the stage for an extension of the ongoing appreciating move.

On the flip side, the 1.2530 region (50% Fibo. level) now seems to protect the immediate downside and is followed by the 1.2500 mark. Failure to defend the mentioned support levels might accelerate the slide back towards intraday lows support near the 1.2460 region.

GBP/USD 4-hourly chart

Technical levels to watch