GBP/USD Price Analysis: Extends the advance to retest 50-DMA at 1.3720
|- GBP/USD builds onto the previous gains to retest 50-DMA at 1.3721.
- The cable’s upside remains favored while above the 21-DMA support.
- RSI edges higher above the midline, supporting the bullish wave.
GBP/USD is looking to extend the advance 1.3700 amid the risk-on market mood, as traders shrug off the rebound in the US Treasury yields and fresh Brexit concerns.
The UK-French tussle extends over the post-Brexit transition rights, as France’s Finance Minister Bruno Le Maire calls for more investment into localized supply chains, blaming the Kingdom for making the supply chain crisis worse.
Meanwhile, European Union (EU) countries want European Commission to be ready if Britain suspends the key part of the Brexit deal, as reported by the Financial Times late Thursday.
Attention now turns towards the US Retail Sales and Michigan Consumer Sentiment releases for further trading impetus on the major.
However, from a near-term technical perspective, the price is aiming for a retest of the descending 50-Daily Moving Average (DMA), now at 1.3721, having recaptured 1.3700, as of writing.
Acceptance above the latter would prompt the bulls to kick start a fresh uptrend towards the bearish 100-DMA at 1.3819. Ahead of that the 1.3750 psychological level could test the bearish commitments on the way higher.
The 14-day Relative Strength Index (RSI) is edging higher above the midline, backing the renewed upside in the spot.
GBP/USD: Daily chart
Alternatively, Thursday’s low at 1.3656 could offer temporary reprieve to the GBP buyers if the tide turns in favor of the sellers.
Further south, the downward-pointing 21-DMA at 1.3621 could be tested on the additional downside.
All in all, the upside appears more compelling for the pair in the near term so long as it holds above the 21-DMA
GBP/USD: Additional levels to consider
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