GBP/USD Price Analysis: Cable buyers approach 1.2520 hurdle amid three-day uptrend

GBP/USD grinds higher after two-day uptrend, defends bounce off 100-SMA.
Firmer RSI (14), sustained trading beyond the key SMAs allow buyers to aim for three-week-old horizontal resistance.
Fortnight-old ascending trend line adds to the downside support.

Anil Panchal FXStreet

GBP/USD gradually marches towards the key upside hurdle as it grinds higher following a two-day winning streak, floating near 1.2500 during the initial hours of Friday’s Asian session.

In doing so, the Cable pair defends the previous day’s rebound from the 100-bar Simple Moving Average (SMA) while also justifying the firmer Relative Strength Index (RSI), placed at 14, not overbought.

With this, the quote’s further upside towards a horizontal area comprising multiple levels marked since April 04, around 1.2505-20, can’t be ruled out. However, the pair’s additional run-up will depend upon how well it can stay beyond the stated hurdle as the Year-To-Date (YTD) peak surrounding 1.2550 could challenge GBP/USD buyers afterward.

In a case where the Cable pair remains firmer past 1.2550, a run-up towards the May 2022 peak of around 1.2665 becomes appealing.

Meanwhile, pullback moves need to break the 100-SMA support of 1.2440 to convince intraday sellers.

Following that, a fortnight-old ascending support line and the 200-SMA, respectively near 1.2410 and 1.2360, may prod the GBP/USD bears.

It’s worth noting, however, that the GBP/USD pair’s weakness past 1.2360 will make it vulnerable to visiting the monthly low of around 1.2275.

GBP/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2496
Today Daily Change	0.0026
Today Daily Change %	0.21
Today daily open	1.247

Trends
Daily SMA20	1.2434
Daily SMA50	1.223
Daily SMA100	1.2206
Daily SMA200	1.1934

Levels
Previous Daily High	1.2516
Previous Daily Low	1.2403
Previous Weekly High	1.2474
Previous Weekly Low	1.2354
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2472
Daily Fibonacci 61.8%	1.2446
Daily Pivot Point S1	1.241
Daily Pivot Point S2	1.235
Daily Pivot Point S3	1.2297
Daily Pivot Point R1	1.2522
Daily Pivot Point R2	1.2575
Daily Pivot Point R3	1.2635

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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