GBP/USD Price Analysis: Bulls are in the market but 1.2450s resistance could be tough
- GBP/USD bulls are moving in and eye a 38.2% Fibo retracement.
- Longer-term bulls eye a bullish extension from trendline support.
GBP/USD has traveled between a low of 1.2395 and a high of 1.2499 so far while it attempts to correct higher late in the New York day. At the time of writing, the pair is trading at 1.2444 and is 0.16% higher. Markets are looking ahead to the central bank meetings with the Federal Reserve scheduled for June 14 and the next Bank of England meeting is scheduled for June 22.
Meanwhile, the technical outlook is meanwhile bullish into a resistance area as follows:
The hourly chart shows an M-formation´s neckline as vulnerable to a restest as the price turns on a dime and moves in towards a 38.2% Fibonacci retracement level. However, bears could move in and target the trendline support.
Longer-term, we could have a scenario whereby the support holds and the bulls commit to target the 1.2580s-1.2680s as illustrated below:
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
