GBP/USD Price Analysis: Climbs further beyond 1.3100 mark, back closer to weekly tops

• GBP/USD gained strong traction on Thursday and climbed further beyond the 1.3100 mark.
• The technical set-up now favours bullish traders and supports prospects for additional gains.
• Dips back below the 1.3100 mark might be seen as a buying opportunity and remain limited.

The GBP/USD pair continued scaling higher through the early North American session and jumped to fresh daily tops, around the 1.3125 region in the last hour. The momentum pushed the pair beyond a one-week-old descending trend-line resistance, which might now be seen as a key trigger for intraday bullish traders.

The breakout comes on the back of the overnight bounce from horizontal support near the key 1.3000 psychological mark and supports prospects for additional gains. Meanwhile, oscillators on the daily chart maintained their bullish bias and have just started gaining traction on the 4-hourly chart, reinforcing the constructive set-up.

Hence, a move towards August daily closing highs, around the 1.3140 region, en-route the recent swing highs near the 1.3185 area, now looks a distinct possibility. Some follow-through buying beyond the 1.3200 mark will set the stage for a move towards reclaiming the 1.3300 round-figure mark for the first time since March.

On the flip side, any meaningful pullback below the 1.3100 mark might still be seen as a buying opportunity and remain limited near the 1.3080-75 support zone. That said, failure to defend the mentioned support might turn the pair vulnerable to slide back towards weekly lows, or a strong base near the 1.3000 mark.

GBP/USD 4-hourly chart

Technical levels to watch