GBP/USD Price Analysis: Cable bulls prod 50-DMA hurdle above 1.2100 as the key week begins

GBP/USD rises to the highest levels in two weeks during a four-day uptrend.
Clear upside break of 21-DMA, previous resistance lines join bullish MACD signal to favor buyers.
Sellers need validation from 1.1920-10 support zone for conviction.

Anil Panchal FXStreet

GBP/USD takes the bids to refresh a three-week high near 1.2125-30 during early Monday morning in Europe. It should be noted that the multiple catalysts including the UK jobs report and the US inflation data highlight this week an important one for the Cable traders.

Also read: GBP/USD bulls are in the market testing bear commitments at 1.2100

That said, the quote cheers the upside break of the 21-DMA and previous resistance lines from early February. Adding strength to the north-side bias are the recently bullish MACD signals and the above 50 levels of RSI (14) that back the last week’s recovery moves.

It’s worth noting, however, that a convergence of the 50-DMA and 50% Fibonacci retracement level around 1.2130 appears the key hurdle for the GBP/USD buyers to cross to keep the reins.

Following that, the Cable pair’s run-up towards the 61.8% Fibonacci retracement level of late January to early March downturn and the mid-February swing high, respectively near 1.2205 and 1.2270 in that order, can’t be ruled out.

Meanwhile, the pullback move may initially aim for the one-month-old resistance-turned-support line, near 1.2030 at the latest, before poking the 21-DMA level of around 1.2020.

In a case where the GBP/USD bears keep control past 1.2020, the previous resistance line from February 02, near the 1.2000 psychological magnet at the latest, appears important to watch.

Even so, the GBP/USD pair sellers should remain cautious unless it breaks the nine-week-old horizontal support line near 1.1920-10.

GBP/USD: Daily chart

Trend: Further upside expected

Additional impotant levels

Overview
Today last price	1.2123
Today Daily Change	0.0098
Today Daily Change %	0.81%
Today daily open	1.2025

Trends
Daily SMA20	1.2014
Daily SMA50	1.2129
Daily SMA100	1.2017
Daily SMA200	1.1901

Levels
Previous Daily High	1.2114
Previous Daily Low	1.1908
Previous Weekly High	1.2114
Previous Weekly Low	1.1803
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.2035
Daily Fibonacci 61.8%	1.1987
Daily Pivot Point S1	1.1918
Daily Pivot Point S2	1.181
Daily Pivot Point S3	1.1712
Daily Pivot Point R1	1.2124
Daily Pivot Point R2	1.2222
Daily Pivot Point R3	1.233

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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