GBP/USD Price Analysis: Bulls yearning for a firm break above 1.3700
|- GBP/USD has more room to the upside, acceptance above 1.37 is critical.
- Bulls remain in charge as long as the cable holds above 21-DMA.
- The spot set to test rising channel resistance above 1.38 amid bullish RSI.
GBP/USD is building onto the recent recovery rally, as the bulls look to recapture the 1.3700 level amid persistent US dollar’s weakness and upbeat UK CPI figures.
Further, the UK’s incredible efforts of ramping up inoculations also seem to bode well for the pound, as the risk-on mood keeps it alive and kicking.
The cable has additional room for advances, as depicted by its daily technical chart. The price trends higher in a potential rising channel formation, with the immediate upside likely capped at 1.3700, the orange horizontal trendline resistance.
Acceptance above the latter is critical to resuming its journey towards the 1.3800 mark. Further up, the channel resistance at 1.3840 could be challenged, as the 14-day Relative Strength Index (RSI) remains firmly bullish, currently at 60.00.
The bullish bias remains intact so long as the price holds above the 21-daily moving average (DMA) at 1.3592.
A breach of the last could trigger a fresh sell-off, with the buyers eyeing the upward-sloping 50-DMA at 1.3451 to their rescue.
Read: GBP/USD Price Forecast 2021: Cable braces for calendar comeback amid three exits
GBP/USD: Daily chart
GBP/USD: Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.