GBP/USD Price Analysis: Cable buyers prod key resistance near 1.2720, Fed inflation eyed

GBP/USD prods one-month-old descending resistance line at weekly top.
Looming bull cross on MACD, steady RSI joins higher high formation to favor Cable bulls.
50-DMA acts as additional upside filter for the Pound Sterling buyers to cross.
Pullback needs validation from five-month-old horizontal support zone.

Anil Panchal FXStreet

GBP/USD buyers attack a downward-sloping resistance line from late July as they await the key US inflation gauge while pausing the three-day uptrend amid early Thursday morning in Asia. In doing so, the Cable pair seesaws around the 1.2720 level while defending the previous week’s rebound from a five-month-old horizontal support zone.

Not only a clear rebound from the key horizontal support but the impending bull cross on the MACD and the steady RSI (14) line also keep the GBP/USD buyers hopeful.

With this, the Pound Sterling is likely to cross the 1.2720 upside hurdle.

However, the 50-DMA level of 1.2780 acts as the last defense of the GBP/USD bears before giving control to the buyers.

Following that, a run-up towards the previous support line stretched from early March, close to 1.2930, and then to the 1.3000 psychological magnet can’t be ruled out.

On the flip side, the GBP/USD pair’s pullback may aim for the monthly horizontal area surrounding 1.2620–15 before revisiting the horizontal area comprising multiple levels marked since early April, close to 1.2545–30.

In a case where the Cable pair drops below 1.2530, it becomes vulnerable to decline toward May’s bottom of around 1.2310.

GBP/USD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2719
Today Daily Change	0.0075
Today Daily Change %	0.59%
Today daily open	1.2644

Trends
Daily SMA20	1.2702
Daily SMA50	1.2782
Daily SMA100	1.2644
Daily SMA200	1.2407

Levels
Previous Daily High	1.2655
Previous Daily Low	1.2563
Previous Weekly High	1.28
Previous Weekly Low	1.2548
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.262
Daily Fibonacci 61.8%	1.2598
Daily Pivot Point S1	1.2586
Daily Pivot Point S2	1.2528
Daily Pivot Point S3	1.2494
Daily Pivot Point R1	1.2678
Daily Pivot Point R2	1.2713
Daily Pivot Point R3	1.277

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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