GBP/USD analysis: turning modestly bullish, break above 1.2530 required

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2490

The GBP/USD pair ends the day flat, a few pips below the 1.2500 level, having set a daily range between 1.2419 and 1.2515 early London, following the release of the BOE's banking stress test. The report showed that the Royal Bank of Scotland being the worst possible performer on a risk-increased scenario. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in a hypothetical scenario which contemplates Brexit and global recession. The Pound found support in rising oil prices, but it was not enough to push the pair beyond the 1.2530, where selling interest is aligned. From a technical point of view, the pair maintains a neutral stance, although with a modest bullish bias, as in the 4 hours chart, the price is developing above its 20 SMA and its 200 EMA, both converging at 1.2460 and clearly reflecting the absence of a dominant trend, while the Momentum indicator heads north above its 100 level, at fresh two weeks highs, but the RSI indicator lost upward strength and heads modestly lower around 54. An upward extension beyond 1.2530 could see the pair rallying up to 1.2600, although further advances ahead of the US NFP report seem unlikely.

Support levels: 1.2460 1.2420 1.2385

Resistance levels: 1.2530 1.2565 1.2610

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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