GBP/USD Price Analysis: Needs to conquer 1.2300 to deliver more gains ahead
|- The Cable is facing barricades while attempting to break above 1.2300.
- Advancing 20-and 50-EMAs signifies more upside ahead.
- A range shift by the RSI (14) into the 60.00-80.00 area will strengthen Pound Sterling.
The GBP/USD pair has witnessed marginal selling pressure after failing to cross the 1.2300 hurdle in the early Tokyo session. The Cable recovered sharply on Friday after a sheer correction to near 1.2150 on the release of robust United States Employment data.
Meanwhile, the risk impulse is extremely bullish as the Federal Reserve (Fed) is still looking to trim the interest rate hike pace. The US Dollar Index (DXY) is declining toward Friday’s low of around 104.40.
On an hourly scale, Cable witnessed a significant buying interest after dropping to near November 24 high of around 1.2150 on Friday. The recovery was full of strength and it pushed Cable near the critical resistance of 1.2300.
Advancing 20-and 50-period Exponential Moving Averages (EMAs) at 1.2260 and 1.2210 add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has recovered after dropping to near 40.00. A break inside the bullish range of 60.00-80.00 would trigger a bullish momentum.
For further upside, a decisive break above Friday’s high at 1.2311 will drive Cable toward June 16 high at 1.2406, followed by the round-level resistance at 1.2500.
Alternatively, a decisive drop below Wednesday’s low at 1.1900 will drag the Cable toward November 22 low at 1.1825. A slippage below the latter will drag the pair to near November 21 low at 1.1779.
GBP/USD hourly chart
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