GBP/USD Price Analysis: Buyers eyeing 1.3000 amid bullish technical set up
- GBP/USD bulls hopeful amid technical breakout, bullish RSI.
- A sustained move above 1.2960 is needed to target 1.3000.
- Brexit negotiations will be closely followed on Monday.
GBP/USD is building on Friday’s sharp recovery from below 1.2900 so far this Monday, as the bulls remain hopeful of some positive developments from a fresh round of Brexit negotiations likely to be held between EU’s Chief Negotiator Michel Barnier and his British counterpart David Frost.
From a near-term technical perspective, the spot has confirmed a descending triangle breakout on the hourly chart, opening doors for a rally towards 1.3100.
On its way north, the price will confront powerful resistance at 1.2960, the confluence of the horizontal 200-hourly moving average (HMA) and downward-sloping 100-HMA.
The hourly Relative Strength Index (RSI) holds firmer within the bullish territory, currently at 60.23, suggesting more room to the upside.
A sustained move above the aforesaid barrier is needed to make another attempt towards the 1.3000 level. A break above which the October 14 high at 1.3064 will be put to test.
Alternatively, strong support at 1.2925 will restrict immediate pullbacks. That level is the confluence of the 21 and 50-HMAs.
Acceptance below the latter would bring the descending trendline resistance-turned-support at 1.2913 back in play.
GBP/USD: Hourly chart
GBP/USD: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
