GBP/USD Price Analysis: Fades upside momentum near five-month high below 1.3200
|- GBP/USD consolidates gains after failing to cross a falling trend line from late-January.
- Overbought RSI conditions, receding strength of MACD also portrays hardships for the bulls.
- An upside break will challenge the yearly top, 1.3000 acts as near-term key support.
GBP/USD sits tightly between 1.3130 and 1.3155, currently around 1.3143, during Friday’s Asian session. The quote refreshed the five-month high previous day by piercing the slightly downward sloping trend line from January 31. However, failures to provide a daily closing beyond the resistance line joins overbought RSI and sluggish MACD to raise doubts over the pair’s further upside.
As a result, sellers may aim for 1.3100 as immediate support ahead of targeting 1.3000 round-figures and the weekly low around 1.2980. Though, the pair’s break of 1.2980 will set the tone for its heavy fall towards the June month top of 1.2813.
Further, the pair’s extended south-run past-1.2813 will have to slip below 1.2710-2700 area, comprising 200-day SMA and 61.8% Fibonacci retracement level of December 2019 to March 2020 downside, to please the bears.
On the upside, a clear break above the mentioned resistance line, currently around 1.3180 will need validation from the 1.3200 threshold before attacking the yearly top near 1.3265.
GBP/USD daily chart
Trend: Pullback expected
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