GBP/USD Price Analysis: Cable bulls need acceptance from 1.3160 and US data to keep the reins
- GBP/USD seesaws at the highest level since April 2022, pauses six-day uptrend.
- Overbought RSI conditions, late 2021 low challenge Cable buyers.
- Pound Sterling’s upside remains favored unless staying beyond two-month-old previous resistance line.
- Bulls can aim for 1.3300 on breaking immediate upside hurdle.
GBP/USD makes rounds to 1.3130-40 after refreshing a 15-month high as it awaits fresh clues during the early hours of Friday’s Asian session. In doing so, the Cable pair takes clues from the overbought RSI conditions while portraying the trader’s cautious mood at the key upside hurdle.
Also read: GBP/USD rally breaks 1.3100 barrier amid soft US PPI data
That said, December 2021 bottom surrounding 1.3160 restricts the immediate upside of the Pound Sterling pair at the multi-month high, amid the overbought RSI (14) line, suggesting a pullback toward the 78.6% Fibonacci retracement of the January-September 2022 downturn, near 1.3030.
However, the Pound Sterling buyers remain hopeful unless the quote stays beyond the previous resistance line stretched from early May 2023, around 1.2970 by the press time.
Following that, the previous monthly high of around 1.2850 and May’s peak of 1.2680 could lure the GBP/USD sellers.
Meanwhile, the Cable buyer’s ability to cross the 1.3160 hurdle could quickly propel the price toward the March 2022 high surrounding 1.3300.
Though, January 2022 low near 1.3360-55 and multiple tops marked in early 2022 around 1.3650 may prod the GBP/USD bulls before directing them to the previous yearly top of near 1.3750.
GBP/USD: Daily 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.
