GBP/USD Price Analysis: Rallies to the highest level since early May, fast approaching 1.2500 mark
|- GBP/USD catches some fresh bids in the last hour and spiked to near one-month tops.
- The set-up favours bullish traders and supports prospects for a move to 1.2500 mark.
The USD selling pressure picked up pace during the early North American session and lifted the GBP/USD pair to near one-month tops, further beyond mid-1.2400s in the last hour.
The intraday positive momentum assisted the pair to break through an important confluence resistance near the 1.2425-30 zone. The mentioned region comprised of 61.8% Fibonacci level of the 1.2644-1.2076 downfall and the top end of a two-week-old ascending trend-channel.
The near-term breakout already seems to have set the stage for an extension of the recent appreciating move and a possible move towards reclaiming the key 1.2500 psychological mark. The constructive outlook is further reinforced by bullish oscillators on the daily chart.
Meanwhile, technical indicators on hourly charts have moved on the verge of breaking into the overbought territory. This, in turn, warrants some caution at higher levels and might force traders to take some profits off the table near the 1.2500 level, capping the upside.
On the flip side, any meaningful pullback below the 1.2430-25 confluence resistance breakpoint now seems to find support near the 1.2400 mark. This is closely followed by the 1.2380-75 horizontal support, which should now act as a strong base for the major.
GBP/USD 4-hourly chart
Technical levels to watch
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