GBP/USD Forecast: nearing key 1.2540 region
|The GBP/USD pair is back above the 1.2500 level, as the dollar continues easing across the board. The pair accelerated its advance after overcoming 1.2480, Wednesday high, now the immediate support. There were no macroeconomic releases in the UK backing the spike up to 1.2518, although easing equities across the region, are adding weigh on the American currency. Later on the day, the US will release some second-tier data, including housing starts and building permits for January, weekly unemployment claims, and a FED manufacturing survey.
From a technical point of view, the pair is back to its usual range after briefly breaching the base on Wednesday, hovering around flat moving averages, and with the Momentum indicator heading nowhere within neutral territory. The RSI indicator, however, indicates some increasing upward momentum, heading higher around 55, its highest level for the week.
The pair has an immediate resistance in the 1.2540 region, the 23.6% retracement of its latest bearish run, with selling interest steadily rejecting advances towards it since mid-last week. Should the price accelerate beyond it, the rally can extend up to 1.2590, while beyond this last, the next resistance comes at 1.2620/40.
Below 1.2470 on the other hand, the risk turns towards the downside, with 1.2430 and 1.2382 as the next supports to follow.
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