GBP/USD Price Analysis: Clings to gains near 3-week tops, eyeing 200-DMA near 1.2700
|- GBP/USD continued scaling higher for the fifth consecutive session on Thursday.
- The set-up favours bulls and supports prospects for a move beyond 200-day SMA.
- Any meaningful pullback might be seen as a buying opportunity and remain limited.
The GBP/USD pair prolonged its recent upward trajectory and gained some follow-through traction for the fifth consecutive session on Thursday. The momentum lifted the pair to fresh three-week tops, around the 1.2670 region during the early North American session.
Bulls might now aim to challenge the very important 200-day SMA, near the 1.2700 round-figure mark. The mentioned level coincides with the 61.8% Fibonacci level of the 1.3515-1.1412 downfall, which if cleared decisively will set the stage for further appreciating move.
Meanwhile, bullish technical indicators on the daily chart support prospects for an eventual break on the upside. However, RSI (14) on the 4-hourly chart is flashing slightly overbought conditions and warrant some caution before placing any aggressive bullish bets.
Nevertheless, the near-term bias remains tilted firmly in favour of bullish traders. Hence, any meaningful slide might still be seen as a buying opportunity, which, in turn, should help limit the downside for the pair near the 1.2600 round-figure mark.
That said, some follow-through selling might turn the pair vulnerable to accelerate the corrective slide back towards the key 1.2500 psychological mark. Failure to defend the latter will negate the near-term constructive outlook and pave the way for additional weakness.
GBP/USD daily chart
Technical levels to watch
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.