GBP/USD is currently bid at 1.2711, having created back-to-back daily candles with long upper shadows. The bulls therefore need a close above the high of those candles, which is 1.12744. Other short-term studies have already rolled over in favor of the bulls. For instance, 5 and 10day MAs produced a bull cross and the RSI is back above 30 with a bullish divergence.
A closer look at the chart indicates the trendline drawn from March 13 and March 27 highs is capping upside since Wednesday. Also the pair is struggling to find a footing above 1.2705 (23.6% Fib Retracement of 1.3176-1.2559.
On the downside, watch out for a break below 1.2668. That would add credence to rejection/failure at key resistances mentioned above and signal and end of the corrective bounce from the May 31 low of 1.2557.