GBP/USD Price Analysis: Climbs above 1.2500, with bulls targeting 200-DMA

GBP/USD rises, rebounding from 1.2474 amid rumors impacting the US Dollar.
Currently, GBP/USD tests the 200-day moving average at 1.2555, showing a neutral to slight bearish outlook.
Breaking above the 200-DMA may target 1.2600, with potential further gains to 1.2621 and 1.2645.
Failure to exceed the 200-DMA could prompt a retest of the 1.2500 support.

Christian Borjon Valencia FXStreet

The Pound Sterling advanced sharply against the US Dollar in early trading during Monday’s North American session after hitting a daily low of 1.2474. Rumors of an intervention by Japanese authorities to propel the Japanese Yen (JPY) weighed on the Greenback, which is tumbling against most G8 FX currencies. Therefore, the GBP/USD trades at 1.2534, gaining 0.36%.

GBP/USD Price Analysis: Technical outlook

From a technical standpoint, the GBP/USD is neutral-biased, though tilted to the downside. It remains below the key 200-day moving average (DMA) at 1.2555, which delineates an asset's bullishness or bearishness. However, buyers are gathering momentum as the Relative Strength Index (RSI) punches above the 50-midline level.

With that context, if buyers achieve a daily close above the 200-DMA, that will expose the 1.2600 figure. Further upside is seen past the 50-DMA at 1.2621, followed by the 100-DMA at 1.2645. Once those levels are surpassed, the 1.2700 mark is up next.

Conversely, failure at the 200-DMA adds pressure on Sterling, which could drag the GBP/USD exchange rate beneath the 1.2500 mark. A breach of the latter will expose the April 24 low at 1.2422, followed by the April 22 low at 1.2299.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2532
Today Daily Change	0.0038
Today Daily Change %	0.30
Today daily open	1.2494

Trends
Daily SMA20	1.2517
Daily SMA50	1.2624
Daily SMA100	1.265
Daily SMA200	1.2557

Levels
Previous Daily High	1.2542
Previous Daily Low	1.2449
Previous Weekly High	1.2542
Previous Weekly Low	1.23
Previous Monthly High	1.2894
Previous Monthly Low	1.2575
Daily Fibonacci 38.2%	1.2485
Daily Fibonacci 61.8%	1.2507
Daily Pivot Point S1	1.2448
Daily Pivot Point S2	1.2402
Daily Pivot Point S3	1.2355
Daily Pivot Point R1	1.2541
Daily Pivot Point R2	1.2588
Daily Pivot Point R3	1.2633

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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