GBP/USD extends gains near 1.2630 on subdued US Dollar

GBP/USD could reach the resistance level at 1.2650.
Technical indicators suggest testing 1.2700 followed by September’s high.
The psychological level of 1.2600 could act as immediate support following the seven-day EMA.

Akhtar Faruqui FXStreet

GBP/USD continues its winning streak that began on Thursday, trading higher around 1.2630 during the Asian session on Tuesday. The Pound Sterling (GBP) shows strength against the US Dollar (USD) for the fourth consecutive day, showcasing the resilience of the UK economy. This steadfast performance comes despite the tightening measures implemented by the Bank of England (BoE).

The GBP/USD pair could meet the resistance barrier at 1.2650. The Moving Average Convergence Divergence (MACD) line, positioned above the centerline and exhibiting divergence above the signal line, implies a strong momentum in the GBP/USD pair.

Additionally, the technical indicators for the GBP/USD pair are signaling a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, suggesting that the pair could reach the 1.2700 psychological level followed by September’s high at 1.2712.

On the downside, the GBP/USD pair could find support around the psychological level at 1.2600 following the seven-day Exponential Moving Average (EMA) at 1.2562 level aligned with the 1.2550 major level.

A decisive break below the level could push the GBP/USD pair to navigate the next support area around the 23.6% Fibonacci retracement at 1.2504 lined up with the 1.2500 psychological level.

GBP/USD: Daily Chart

GBP/USD: Other technical levels

Overview
Today last price	1.263
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.263

Trends
Daily SMA20	1.2381
Daily SMA50	1.2269
Daily SMA100	1.2496
Daily SMA200	1.2459

Levels
Previous Daily High	1.2644
Previous Daily Low	1.2591
Previous Weekly High	1.2616
Previous Weekly Low	1.2446
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2624
Daily Fibonacci 61.8%	1.2612
Daily Pivot Point S1	1.2599
Daily Pivot Point S2	1.2568
Daily Pivot Point S3	1.2546
Daily Pivot Point R1	1.2652
Daily Pivot Point R2	1.2675
Daily Pivot Point R3	1.2706

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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