On weakness in the DXY, GBP/USD is consolidating on the 1.32 handle and has exceeded the earlier highs at the start of the month and falling just shy of the high of 28th July at 1.3216.

GBP/USD has been making a recovery from 1.2868 August lows in a strong ascent while investors take advantage of not such a poor aftermath in the Brexit vote and a not so certain outlook for US interest rates weighing in on the greenback despite efforts by Fed officials to keep the mantra alive. The Jackson Hole will address for markets when Yellen speaks and US GDP will also be a major catalyst for the pair on Friday. 

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Technically, Valeria Bednarik, chief analyst at FXStreet explained that "in the 4-hours chart, the price is a few pips below its 200 EMA, but well above the 20 SMA, while the Momentum indicator heads sharply higher within positive territory and the RSI stands around 69, all of which supports further advances, particularly on a break above 1.3220, the immediate resistance".

GBP/USD levels

Spot is presently trading at 1.3195, and next resistance can be seen at 1.3213 (Daily High), 1.3220 (Weekly Classic R1), 1.3235 (Daily Classic R2), 1.3312 (Daily Classic R3) and 1.3356 (Monthly High). Next support to the downside can be found at 1.3187 (Daily Classic R1), 1.3172 (Hourly 20 EMA), 1.3167 (Weekly High), 1.3159 (Yesterday's High) and 1.3137 (Daily Open). Regarding candlestick formations, we can see Piercing Line formation on the 4-hour .