GBP/USD Price Analysis: Cable looks set to regain 1.3000 as technical details favor bulls

GBP/USD reverses from one-week low, snaps four-day losing streak.
Bullish candlestick, U-turn from key support confluence and RSI’s rebound from oversold territory favor Cable bulls.
Pound Sterling weakness appears elusive beyond 200-EMA; five-week-old horizontal support will also prod sellers.

Anil Panchal FXStreet

GBP/USD remains on the front foot around the intraday high of near 1.2965 amid early Thursday morning in London, snapping a four-day downtrend while reversing from the lowest levels in seven days. In doing so, the Cable pair justifies multiple technical signals which favor the bullish bias about the Pound Sterling price.

Among them, Wednesday’s bullish Doji candlestick at the weekly low gains major attention as it prevails at the convergence of the 100-bar Exponential Moving Average (EMA) and a three-week-long rising support line. Adding strength to the upside bias is the RSI (14) line’s rebound from the oversold region.

With this, the GBP/USD price appears well-set to regain the 1.3000 round figure. However, a horizontal area comprising lows marked during the mid-July, around 1.3045-50 may prod the pair buyers afterward.

In a case where the Cable pair remains firmer past 1.3050, the odds of witnessing a run-up toward the monthly high of 1.3142 can’t be ruled out.

On the contrary, a successful downside break of the 1.2895-90 support confluence, comprising the multi-day-old rising support line and the 100-EMA, can please the intraday sellers but may not term the GBP/USD pair as bearish as a five-week-old horizontal area near 1.2850 can prod the sellers.

Apart from the 1.2850 support, the 200-EMA level of around 1.2780 also acts as the final defense of the GBP/USD bulls.

GBP/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.296
Today Daily Change	0.0020
Today Daily Change %	0.15%
Today daily open	1.294

Trends
Daily SMA20	1.2831
Daily SMA50	1.2643
Daily SMA100	1.249
Daily SMA200	1.223

Levels
Previous Daily High	1.3045
Previous Daily Low	1.2868
Previous Weekly High	1.3142
Previous Weekly Low	1.275
Previous Monthly High	1.2848
Previous Monthly Low	1.2369
Daily Fibonacci 38.2%	1.2935
Daily Fibonacci 61.8%	1.2977
Daily Pivot Point S1	1.2857
Daily Pivot Point S2	1.2774
Daily Pivot Point S3	1.268
Daily Pivot Point R1	1.3034
Daily Pivot Point R2	1.3127
Daily Pivot Point R3	1.321

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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