The GBP/USD pairing has surged in recent weeks, following a false-break of the 1.2100 key support level.

Overall, this pair is still in a downtrend, but it is trapped in a trading range and moving higher. We still see this pair as mildly bullish while above the 1.2430 level.

Notice a recent inside bar price action pattern break higher that took place last week. The area of the inside bar should act as support this week if it manages to re-test the 1.2430 level.

This week, we are looking to potentially get long while prices remain above 1.2430, and we see upside potential back to the 1.2765 previous high. However, we would avoid buying on a convincing close below the 1.2430 level.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.