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According to Karen Jones, analyst at Commerzbank, GBP/USD pair has recently eroded its short term downtrend and this is now acting as support at 1.2967.

Key Quotes

“The intraday Elliott wave count has turned more positive and we have already reached 1.3188/97, the 61.8% retracement and 3rd April high. It will need to regain 1.3217 (25th January high) to introduce scope up to the 1.3351/82 resistance, where we expect it to struggle. Dips lower should hold around the 200 day ma at 1.2960. Failure here targets the 1.2865 April low and this in turn protects the February low at 1.2772.”

“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”