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.
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
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.
