Pound Sterling Price News and Forecast: trades nearly half a percent higher as the dollar weakens further
|GBP/USD breaks 1.25 and a key resistance zone but are the bulls in charge?
The USD has once again been the underperformer in the FX markets as the risk-on environment continues. This has lead the price of GBP/USD to push higher despite GBP not really being one of the strongest of the G10 currencies on Tuesday. EUR/GBP and GBP/AUD can be our barometer with the pound struggling in both pairs.
Looking at the 1-hour chart below, the 200 Simple Moving Average has been taken out. The indicator was closely aligned with the 38.2% Fibonacci retracement and both have now been rendered obsolete but the push higher in the pair.
GBP/USD: How the bulls will respond in the $1.2450/$1.2500 resistance band?
It is interesting to see a rally on Cable has pulled the market back into an area of resistance and what could be an important crossroads. The question for today’s session is one of how the bulls respond in the resistance band $1.2450/$1.2500. This is an area where there were several lows formed during the first half of June, prior to last week’s breakdown. How the market now reacts around this area of overhead supply will be important for outlook over the coming sessions. It will gauge whether this is an unwind within a downtrend, or something more positive for the bulls.
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