GBP/USD Price Analysis: Bulls approach 1.2435 hurdle amid five-day uptrend

GBP/USD picks up bids to refresh intraday high; extends previous two-week winning streak.
RSI conditions, six-week-old resistance line challenge Cable buyers.
21-SMA, ascending trend line from early January puts a floor under the price.

Anil Panchal FXStreet

GBP/USD stays on the front foot as bulls keep the driver’s seat during early Monday morning in Asia, after a two-week uptrend. That said, the Cable pair renews its intraday high near 1.2410 while rising for the fifth consecutive day as of late.

In doing so, the quote extends the previous day’s rebound from the 21-SMA, around 1.2350 by the press time.

In addition to the 21-SMA, an upward-sloping support line from January 06, close to 1.2340 at the latest, also restricts the short-term downside of the Cable pair.

Should the quote drops below 1.2340 support, the 200-SMA level surrounding 1.2165 will act as the last defense of the GBP/USD pair buyers, a break of which won’t hesitate to give control to the bears targeting the 1.2000 psychological magnet.

It’s worth noting that the RSI (14) is near the overbought territory, which in turn highlights a 1.5-month-old resistance line near 1.2435 as the key challenge for the GBP/USD bulls.

Following that, the previous monthly high near 1.2450 will be crucial to watch as a clear upside break of the same could propel the quote toward May 2022 high near 1.2670.

In a case where the GBP/USD price remains firmer past 1.2670, the March 2022 low around the 1.3000 round figure will be in focus.

GBP/USD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.2409
Today Daily Change	0.0014
Today Daily Change %	0.11%
Today daily open	1.2395

Trends
Daily SMA20	1.2143
Daily SMA50	1.211
Daily SMA100	1.1724
Daily SMA200	1.1978

Levels
Previous Daily High	1.2404
Previous Daily Low	1.2335
Previous Weekly High	1.2436
Previous Weekly Low	1.2169
Previous Monthly High	1.2447
Previous Monthly Low	1.1992
Daily Fibonacci 38.2%	1.2378
Daily Fibonacci 61.8%	1.2362
Daily Pivot Point S1	1.2352
Daily Pivot Point S2	1.2309
Daily Pivot Point S3	1.2283
Daily Pivot Point R1	1.2421
Daily Pivot Point R2	1.2447
Daily Pivot Point R3	1.249

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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