GBP/USD Price Analysis: Bulls remain in control, fast approaching 1.3000 mark

GBP/USD continued scaling higher through the early North American session on Wednesday.
The formation of an ascending channel support prospects for a move beyond the 1.3000 mark.
Overbought conditions on the daily chart warrant some caution for aggressive bullish traders.

Haresh Menghani FXStreet

The GBP/USD pair built on its recent bullish break through the very important 200-day SMA and shot to the highest level since March 10 on Wednesday.

Looking at the technical picture, the recent positive momentum over the past three months or so has been along an upward sloping channel, pointing to a well-established bullish trend. This, in turn, supports prospects for a further near-term appreciating move amid the prevalent selling bias around the USD.

However, technical indicators on the daily chart are flashing overbought conditions and warrant some caution for aggressive bulls. Hence, any subsequent move up – though could get extended beyond the 1.3000 psychological mark – is likely to confront a stiff resistance near the top end of the mentioned channel, around the 1.3030 region.

That said, any meaningful pullback might attract some dip-buying near the 1.2900 round-figure mark and should help limit the downside near the 1.2880 region. A convincing breakthrough the said support levels might negate the bullish outlook and drag the pair towards the 1.2815-10 region – the previous swing high set on June 10.

GBP/USD daily chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.2983
Today Daily Change	0.0051
Today Daily Change %	0.39
Today daily open	1.2932

Trends
Daily SMA20	1.263
Daily SMA50	1.2525
Daily SMA100	1.241
Daily SMA200	1.2702

Levels
Previous Daily High	1.2953
Previous Daily Low	1.2838
Previous Weekly High	1.2804
Previous Weekly Low	1.2518
Previous Monthly High	1.2813
Previous Monthly Low	1.2252
Daily Fibonacci 38.2%	1.2909
Daily Fibonacci 61.8%	1.2882
Daily Pivot Point S1	1.2863
Daily Pivot Point S2	1.2793
Daily Pivot Point S3	1.2748
Daily Pivot Point R1	1.2977
Daily Pivot Point R2	1.3022
Daily Pivot Point R3	1.3091

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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