GBP/USD Forecast: Short term bullish 1.2510 at sight

Valeria Bednarik FXStreet

The GBP/USD pair stands at fresh January highs, having extended its advance up to 1.2471 so far this Monday, aided by broad dollar's weakness. There are no major events scheduled for this Monday, but on Tuesday, the UK Supreme Court will rule if the local parliament should have a say in triggering the Brexit, or not. If the Court says that May can't trigger the Art. 50 without the court approval, the Pound could suffer and u-turn, as despite the ongoing dollar's weakness, the UK's fundamental background is quite risky, and the Pound sensitive to Brexit woes.

Technically and in the short term, the pair holds near the mentioned high, having advanced well above its 20 SMA and 200 EMA, both in the 1.2300/30 region, in the 4 hours chart, whilst technical indicators in the mentioned time frame are easing modestly from near overbought levels, reflecting the ongoing consolidation rather than suggesting an upcoming downward move.

Further advances beyond the mentioned daily high should result in a test of 1.2510, December 16th high, en route to the 1.2550 region, a strong static resistance level. Short term buying interest is surging around 1.2410, with the following intraday supports at 1.2370 and 1.2330.

View live chart of 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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