• GBP/USD started a fresh climb from around 1.3600.
• Multiple resistance levels above 1.3760 could limit further gains.

The British Pound, US Dollar pair had been in decline since the recent high of 1.3850 on September 14th. GBP/USD broke below support at the 1.3800 level, dropping down towards 1.3600 before correcting upwards.

GBP/USD 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the quote broke below a bullish trend line at 1.3780, and both the 100-MA (red) and 200-MA (blue). It has since continued to trade below the 1.3750 level.

The pair dropped to as low as 1.3609 on September 22nd, before starting an upside correction. The quote was able to break above the 1.3700 resistance level. It also broke above the 23.6% Fibonacci retracement level of the downward move from the swing high of 1.3913 to the swing low of 1.3609.

Further gains could be limited as the pair will need to break above strong resistance between the 1.3760 and 1.3780 levels. Also in this zone is the 50% Fibonacci retracement level (of the 1.3913 high to the 1.3609 low) and both the 100-MA (red) and 200-MA (blue). If the pair can break above all of these levels, bullish momentum will likely take the quote back towards the recent high near 1.3900.

In contrast, if the pair fails to break resistance at 1.3720, it could trigger a fresh decline. Momentum could take the quote down towards support near the 1.3620 level. A break below this could see bears drive the quote down as far as 1.3570, last seen on July 20th.