GBP/USD Price Analysis: Struggles to violate the critical hurdle of 1.2100
|- A responsive buying action after testing the two-week-old support of the June 14 low at 1.1970 favors sterling.
- The cable is attempting to breach the critical barricade of 1.2100 in the Asian session.
- Pound bulls are established above the 20-EMA and are aiming to oscillate above the 50-EMA.
The GBP/USD pair is attempting to overstep the potential resistance of 1.2106 in order to turn the rebound into a bullish reversal. The pound bulls are hovering around the above-mentioned potential resistance from the early Tokyo session.
The cable has witnessed a responsive buying action after testing the two-week-old support of the June 14 low at 1.1970. Usually, a responsive buying action in the asset indicates that the asset has become a value bet now. Currently, the potential resistance of Wednesday’s low at 1.2106 is acting as a major barricade for the pound bulls.
An establishment above the 20-period Exponential Moving Average (EMA) at 1.2090 adds to the upside filters. Also, the cable has attacked the 50-EMA at 1.2115. However, sustainability above the same will strengthen the pound bulls further.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range, which signals a consolidation ahead.
A decisive move above Monday’s high at 1.2122 will send the asset towards Friday’s high at 1.2188. A breach of the latter will drive the cable towards Tuesday’s high at 1.2292.
Alternatively, the greenback bulls could regain their glory if the asset drops below Friday’s low at 1.1976. An occurrence of the same will drag the asset towards the round-level support at 1.1900, followed by a 26 March 2020 low at 1.1777.
GBP/USD hourly chart
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