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.
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
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.
