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GBP/USD is trying hard to extend the recovery as Friday’s 4-hour chart is showing an improving picture for the bulls. Yohay Elam, an analyst at FXStreet, notes that the cable needs to surpass the psychological 1.30 level to continue the rise on a strong foot.

Key quotes

“Momentum on the 4-hour chart is positive, and the currency pair topped the 50 Simple Moving Average, both bullish developments. However, GBP/USD is still trading below 1.30 – which is not only a psychologically significant level but also a stubborn separator of ranges.”

“Above 1.30, the next line to watch is 1.3045, which capped cable last week, followed by 1.3150, a support line in both August and September.” 

“Support awaits at 1.2920, which capped cable early in the week, and then 1.2855, Thursday’s low. Further down, 1.2765 is September’s low.”