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  • The pair manages to attract some dip-buying interest near the 1.2200 round figure mark.
  • Move beyond a short-term descending trend-channel paves the way for additional gains.

The GBP/USD pair quickly reversed an early European session dip to the 1.2200 neighbourhood and rallied to over one-week tops, around the 1.2275-80 region in the last hour.  The positive momentum helped the pair to break through a short-term descending trend-line resistance – extending from mid-July – and sets the stage for further appreciating move.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and further reinforce the near-term bullish outlook amid the latest Brexit-related optimism. Hence, a follow-through buying has the potential to lift the pair towards reclaiming the 1.2300 handle before bulls eventually aim to test the next hurdle near the 1.2370-75 region.
However, oscillators on hourly charts are on the verge of flashing overbought conditions and might turn out to be the only factor holding investors from placing aggressive bullish bets. On the flip side, any meaningful pullback might continue to attract some dip-buying interest near the 1.2200 handle and help limit any further downside near the 1.2175-70 support area.

GBP/USD 4-hourly chart