GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.
Once GBP/USD returns with the ascending channel above 1.2200, additional gains toward 1.2250 (mid-point of the regression channel, 20-period SMA) and 1.2300 (psychological level) could be witnessed.
On the downside, 1.2100 (Fibonacci 23.6% retracement of the latest downtrend) aligns as intra-day support ahead of 1.2030 (100-period Simple Moving Average (SMA) on the four-hour chart) and 1.2000 (psychological level).
It’s worth noting that the 200-day SMA is currently located at 1.2130. A daily close below that level could be seen as a bearish development.