GBP/USD Price Analysis: Attempts to surpass crucial resistance at 1.2270

The cable is attempting to overstep its potential resistance at 1.2266.
An establishment above the 50-EMA adds to the upside filters.
The RSI (14) is trading back and forth in a 40.00-60.00 range, which signals a rangebound move.

Sagar Dua FXStreet

The GBP/USD pair is displaying back and forth moves in a narrow range of 1.2236-1.2266 in the early Tokyo session. The asset has been gradually scaling higher after hitting a low of 1.2173 on Friday as risk-perceived currencies found significant interest.

An upside break of the cable from its previous range of 1.2173-1.2248 has underpinned the pound against the greenback. The pair is hovering near its crucial horizontal resistance placed from May 9 high at 1.2262. The trendline placed from March 5 high at 1.2663, adjoining the previous week’s high a 1.2400 will act as a major barricade ahead.

An establishment above the 50-period Exponential Moving Average (EMA) at 1.2233 is advocating bulls for further upside. However, the asset is still lower from 200-EMA at 1.2340, which signals that a downside bias persists.

The momentum oscillator, Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals a directionless move going forward.

Investors should consider a bullish move in the asset if it oversteps the above-mentioned trendline at 1.2300. This will send the asset towards the previous week’s high at 1.2400, followed by May 9 high at 1.2662.

Alternatively, greenback bulls could regain control if the asset drops below Friday’s low at 1.2173, which will send the asset towards the 18 May 2020 low at 1.2075. A breach of the latter will drag the cable towards 25 March 2020 high at 1.1973.

GBP/USD hourly chart

GBP/USD

Overview
Today last price	1.2262
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.2262

Trends
Daily SMA20	1.2578
Daily SMA50	1.2896
Daily SMA100	1.3209
Daily SMA200	1.3397

Levels
Previous Daily High	1.2265
Previous Daily Low	1.2155
Previous Weekly High	1.2406
Previous Weekly Low	1.2155
Previous Monthly High	1.3167
Previous Monthly Low	1.2411
Daily Fibonacci 38.2%	1.2223
Daily Fibonacci 61.8%	1.2197
Daily Pivot Point S1	1.219
Daily Pivot Point S2	1.2118
Daily Pivot Point S3	1.2081
Daily Pivot Point R1	1.2299
Daily Pivot Point R2	1.2337
Daily Pivot Point R3	1.2409

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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