GBP/USD Price Analysis: Bulls eye key resistance confluence above 1.2900 amid Brexit optimism
- GBPUSD stays firm after breaking 100-day EMA the previous day.
- EU policymakers show preparedness to work on legal agreement.
- A joint of 21-day and 50-day EMAs lures the pair buyers.
- 61.8% Fibonacci retracement adds to the downside support.
GBP/USD remains positive while rising to 1.2875, up 0.31% on a day, during Tuesday’s Asian session. The Cable recently benefited from news shared by The Times that suggests the European Union (EU) is softening the stand over Brexit talks.
Read: GBP crosses catching a bid in Asia on Brexit hopes
Other than the fundamentals, the pair’s ability to cross the 100-day EMA also directs the bulls towards 1.2910/20 resistance confluence comprising 21-day and 50-day EMA.
Should GBP/USD buyers remain firm beyond 1.2920, the 1.3000 psychological magnet and the mid-month high around 1.3010 will be on their radars.
On the contrary, a downside break of 100-day EMA, currently near 1.2830 may rest on 61.8% Fibonacci retracement of June-September upside by the Pound major, at 1.2721 now.
In a case where the quote provides a daily closing below 1.2721, the early July tops near 1.2670 will be in the spotlight.
GBP/USD daily chart
Trend: Further upside expected
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.
