GBP/USD Price Analysis: Sets for a break above 1.2800 amid a positive market mood
|- GBP/USD is making efforts for shifting the auction above 1.2800 as the risk-appetite theme is in action.
- The Pound Sterling is in the limelight as the BoE is expected to raise interest rates further.
- GBP/USD has printed a fresh annual high of around 1.2790 after climbing above the horizontal resistance plotted at 1.2667.
The GBP/USD pair is gathering strength for climbing above the round-level resistance of 1.2800 in the early European session. The Cable has already shown a solid rally and is expected to extend gains further as the risk appetite of the market participants is extremely solid.
S&P500 futures have recovered some losses, portraying a recovery in the overall market mood. The US Dollar Index (DXY) is oscillating in a narrow range above 102.00 after a massive sell-off. More downside seems solid as United States Employment conditions have eased further following the fourth consecutive addition in weekly jobless claims than expectations.
The Pound Sterling is in the limelight as the Bank of England (BoE) is expected to raise interest rates further to keep building pressure on stubborn United Kingdom inflation.
GBP/USD has printed a fresh annual high around 1.2790 after climbing above the horizontal resistance plotted from 27 May 2022 high at 1.2667. Advancing 20-period Exponential Moving Average (EMA) at 1.2558 is providing support to the Pound Sterling bulls. Forward resistance is plotted from 14 March 2022 low around 1.3000
The Relative Strength Index (RSI) (14) has climbed above 60.00, showing no signs of divergence and any kind of overbought situation. This indicates an activation of the bullish momentum.
For further upside, a confident break above 1.2800 will drive the Cable toward the round-level resistance at 1.2900 followed by 14 March 2022 low around 1.3000.
On the flip side, a break below May 31 low at 1.2348 would drag the asset toward May 25 low at 1.2308. Slippage below the latter would expose the asset to April 03 low at 1.2275.
GBP/USD daily chart
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