GBP/USD technical analysis: Upside remains capped by 1.2815/20

• Immediate channel’s upper-line, 4H 200MA and May month extreme levels constitute upside resistance.
• Break of the nearby channel can recall 1.2620 as a quote.

Despite lack of momentum, a 12-day long ascending trend-channel portrays the GBP/USD pair’s strength as it trades near 1.2720 ahead of the London open on Wednesday.

With this, the pair can keep being a strong contestant to aim for 1.2760/65 and 38.2% Fibonacci retracement level of 1.2800.

However, 200-bar moving average (4H 200MA), resistance-line of the channel and extreme levels of late-May could restrict the pair’s additional rise around 1.2815/20.

Should buyers dominate past-1.2820, 1.2900 and 61.8% Fibonacci retracement near 1.2945 could be their next bets.

On the downside break of channel support, at 1.2680, may trigger the pair’s pullback to 1.2655 and then to a recent low around 1.2620.

GBP/USD 4-Hour chart

Trend: Bearish