Karen Jones, analyst at Commerzbank, suggests that the GBP/USD pair has recently eroded its short term downtrend and 20 day ma and it was enough to negate the current downside pressure on the market.

“The intraday Elliott wave count has turned more positive and we would allow for gains to the 1.3126/1.3188 50% and 61.8% retracements. Dips lower should hold around the 200 day ma at 1.2960. Failure here targets the 1.2865 April low and this in turn protects the February low at 1.2772. It will need to regain 1.3217 (25th January high) to introduce scope up to the 1.3351/82 resistance. Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”