GBP/USD Price Analysis: Bulls flex muscles for another fight with 1.2450 hurdle
- GBP/USD stays firmer at the highest levels in two months.
- Successful trading above a fortnight-old ascending support line, 2.5-month-old horizontal area keeps Cable bulls hopeful.
- Multiple tops marked since early December 2022 highlights 1.2445-50 as the key upside resistance.
- Upbeat oscillators add strength to the bullish bias.
GBP/USD bulls keep the reins around a two-month high near 1.2390 as they approach a critical resistance area during early Friday. In doing so, the Cable pair braces for a five-week uptrend.
That said, a sustained break of the 10-week-old horizontal resistance area, now support around 1.2285-65, joins the clear respect of a fortnight-long ascending trend line, close to 1.2320, to keep the GBP/USD pair buyers hopeful.
Adding strength to the upside bias are the bullish MACD signals and the firmer RSI (14) line, not overbought.
As a result, the Cable pair appears well-set to challenge an area comprising multiple tops marked since December 13, 2022, around mid-1.2400s.
Given the absence of the overbought RSI, in addition to the aforementioned price-positive catalysts, the GBP/USD is likely to cross the stated 1.2450 crucial resistance.
Following that, the 61.8% Fibonacci Expansion (FE) of its November 2022 to March 2023 moves, near 1.2610 will be in focus.
Meanwhile, the previously stated support line and the broad horizontal area, respectively near 1.2320 and 1.2285-65, restrict short-term GBP/USD downside.
In a case where GBP/USD drops below 1.2265, the mid-month top around the 1.2200 threshold could lure the bears.
It should be noted that the 23.6% Fibonacci retracement of the Cable pair’s November 2022 to January 2023 moves, near 1.2140, precedes the 1.2000 psychological magnet to challenge the bulls afterward.
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.
