GBP/USD Price Analysis: Cable bulls brace for a bumpy road ahead, 1.3010 appears crucial hurdle

GBP/USD edges higher after positing two-day winning streak.
Sustained break of 50-SMA, upbeat oscillators favor Pound Sterling buyers.
Two-week-old horizontal resistance, convergence of important trend lines prod Cable buyers.
US GDP, Durable Goods Orders test Pound Sterling bulls despite upbeat oscillators.

Anil Panchal FXStreet

GBP/USD bulls take a breather after a two-day uptrend, making rounds to the weekly top surrounding 1.2960 amid the early hours of Thursday’s Asian session. In doing so, the Cable pair portrays the market’s cautious mood ahead of the top-tier data/events, as well as portrays consolidation ahead of the key upside hurdles.

It’s worth noting, however, that the bullish MACD signals and the upbeat RSI (14) line, now overbought, join the GBP/USD pair’s upside break of the 50-SMA to favor the pair buyers.

However, a two-week-old horizontal resistance area surrounding 1.2960-70 guards the immediate upside of the Pound Sterling.

Following that, a convergence of the previous support line stretched from late June and a fortnight-long descending trend line, close to 1.3010 at the latest, will act as the final defense of the GBP/USD pair sellers, a break of which won’t hesitate to challenge the yearly top around 1.3145.

On the flip side, a clear break of the 50-SMA level of around 1.2910 can direct the GBP/USD price toward the 50% Fibonacci retracement of its late June to early July upside, near 1.2865.

Even so, the 200-SMA and 61.8% Fibonacci retracement together could challenge the Cable pair bears around 1.2810-2800.

Overall, GBP/USD stays on the bull’s radar but the road towards the north is long and bumpy.

Elsewhere, the cautious mood ahead of the first readings of the US Gross Domestic Product (GDP) for the second quarter (Q2) and the European Central Bank’s (ECB) monetary policy meeting, as well as US Durable Goods Orders for June, prods the GBP/USD bulls.

Also read: GBP/USD shoots higher as Fed chair sticks to the data dependent script

GBP/USD: Four-hour chart

Trend: limited upside expected

additional important levels

Overview
Today last price	1.2935
Today Daily Change	0.0032
Today Daily Change %	0.25%
Today daily open	1.2903

Trends
Daily SMA20	1.2857
Daily SMA50	1.2673
Daily SMA100	1.2526
Daily SMA200	1.2262

Levels
Previous Daily High	1.2905
Previous Daily Low	1.281
Previous Weekly High	1.3126
Previous Weekly Low	1.2816
Previous Monthly High	1.2848
Previous Monthly Low	1.2369
Daily Fibonacci 38.2%	1.2868
Daily Fibonacci 61.8%	1.2846
Daily Pivot Point S1	1.284
Daily Pivot Point S2	1.2777
Daily Pivot Point S3	1.2744
Daily Pivot Point R1	1.2935
Daily Pivot Point R2	1.2968
Daily Pivot Point R3	1.3031

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.

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