- GBP/USD was seen consolidating strong intraday gains to the highest level since February 24.
- Slightly overbought RSI on hourly charts capped the upside near an ascending channel hurdle.
- The set-up seems tilted in favour of bullish traders and supports prospects for additional gains.
The GBP/USD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a range near the 1.4200 mark, or the highest level since February 24.
The heavily offered tone surrounding the US dollar – fueled by dovish Fed expectations – assisted the GBP/USD pair to gain traction for the third consecutive session on Tuesday. The intraday positive momentum got an additional boost following the release of mostly upbeat UK monthly employment details.
However, overstretched conditions on hourly charts capped the GBP/USD pair near a resistance marked by the top boundary of a one-month-old ascending channel. This makes it prudent to wait for a sustained break through the mentioned barrier before positioning for any further near-term appreciating move.
Meanwhile, oscillators on the daily chart are still far from being in the overbought territory and support prospects for an eventual breakout through the mentioned barrier. This, in turn, suggests that the path of least resistance for the GBP/USD pair remains up amid sustained USD selling bias.
On the flip side, the previous monthly swing highs, around the 1.4165-60 region now seems to protect the immediate downside and any subsequent fall might be seen as a buying opportunity. This, in turn, should help limit the downside for the GBP/USD pair near the 1.4100 mark, at least for the time being.
GBP/USD 4-hour chart
Technical levels to watch
|Today last price||1.4205|
|Today Daily Change||0.0070|
|Today Daily Change %||0.50|
|Today daily open||1.4135|
|Previous Daily High||1.4147|
|Previous Daily Low||1.4077|
|Previous Weekly High||1.4166|
|Previous Weekly Low||1.3982|
|Previous Monthly High||1.4009|
|Previous Monthly Low||1.3669|
|Daily Fibonacci 38.2%||1.412|
|Daily Fibonacci 61.8%||1.4104|
|Daily Pivot Point S1||1.4092|
|Daily Pivot Point S2||1.405|
|Daily Pivot Point S3||1.4023|
|Daily Pivot Point R1||1.4162|
|Daily Pivot Point R2||1.4189|
|Daily Pivot Point R3||1.4232|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.