GBP/USD Price Analysis: 100-DMA breakout keeps buyers hopeful, BOE eyed
|- GBP/USD pokes intraday high during the four-day uptrend.
- Further gains envisioned on firmer RSI, sustained break of the key moving average.
- 50-DMA, monthly resistance line probe buyers, bumpy road ahead for bears.
GBP/USD picks up bids to 1.3965 during the fourth consecutive positive day in Asia. In doing so, the cable pair cheers the previous day’s upside break of 100-day SMA (DMA) amid upbeat RSI conditions. However, bulls are chained ahead of the key monetary policy meeting of the Bank of England (BOE).
Also read: BoE Preview: Cautiously hawkish, hints on tightening?
In addition to the 100-DMA breakout and RSI levels, a successful run-up beyond a horizontal area from early April, around 1.3925-15, strengthens the bullish impulse.
Hence, GBP/USD buyers are well set to battle the 1.4000 threshold while the quote’s further upside will be tested by late April tops near 1.4010.
Also acting as the key upside barriers are 50-day SMA level of 1.4036 and a descending resistance line from June 01 near 1.4070.
Meanwhile, GBP/USD bears will have a tough time on their return as 100-DMA of 1.3950 and the resistance-turned-support area of 1.3925-15 act as near-term strong supports.
Even if the pair breaks the 1.3915 level, 1.3850 and the monthly low near 1.3785 will challenge any further downside.
GBP/USD daily chart
Trend: Further upside expected
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