GBP/USD Analysis: in limbo between 55 and 100-day SMAs Level

Dukascopy Bank Team Dukascopy Bank SA

“This [the overnight high] coupled with the strong daily closing suggest further upwards pressure and a daily closing above 1.2370 would indicate that GBP has moved into a bullish phase (with an immediate target of 1.2500).”

– UOB Group (based on PoundSterlingLive)

Pair’s Outlook
The Cable managed to unexpectedly recover from its intraday low on Friday, ultimately ending trade in the green zone. Moreover, the British Pound was able to breach the immediate resistance, but with gains unable to climb over the 1.24 major level, where psychological resistance was strong. Friday’s rally only confirmed the overall outlook, with the GBP/USD pair now being one step closer to reaching its main goal, namely the nine-month down-trend. The final obstacle ahead of this target is the 100-day SMA, which provides resistance circa 1.2415, but technical studies are unable to confirm the possibility of another positive outcome.
Traders’ Sentiment
There are still 68% of traders being long the Sterling today, while all pending orders are now equally divided between buy and sell ones.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2407
2. R2 1.2401
3. R1 1.2393
PP 1.2387
1. S1 1.2378
2. S2 1.2373
3. S3 1.2364

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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