GBP/USD Price Analysis: Climbs yet remain contained below 1.2600

GBP/USD edges higher on soft US Dollar, climbs above 200-DMA.
If buyers reclaim 1.2600, look for a test of 1.2700 in the near term.
Once the pair tumbles below 1.2500, look for a drop toward 1.2445 and 1.2299.

Christian Borjon Valencia FXStreet

The Pound Sterling gains traction against the US Dollar and climbs above the 200-day moving average (DMA) of 1.2541 in early trading during the North American session. At the time of writing, the GBP/USD trades at 1.2566, up by 0.36%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD is currently uncertain, showing a neutral bias. It is unable to decisively continue trending up and push above the May 3 high at 1.2634, the latest cycle high. Once cleared, that could exacerbate a rally toward the April 9 high at 1.2709 before challenging the psychological 1.2800 figure.

On the other hand, a bearish resumption is most likely once sellers’ step in and breach below the 200-DMA and 1.2500. If those two levels are taken out, the next support emerges at 1.2445 the May 9 low, followed by the April 22 low of 1.2299.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2563
Today Daily Change	0.0038
Today Daily Change %	0.30
Today daily open	1.2525

Trends
Daily SMA20	1.2484
Daily SMA50	1.2599
Daily SMA100	1.2637
Daily SMA200	1.2543

Levels
Previous Daily High	1.2541
Previous Daily Low	1.2503
Previous Weekly High	1.2594
Previous Weekly Low	1.2446
Previous Monthly High	1.2709
Previous Monthly Low	1.23
Daily Fibonacci 38.2%	1.2526
Daily Fibonacci 61.8%	1.2517
Daily Pivot Point S1	1.2505
Daily Pivot Point S2	1.2484
Daily Pivot Point S3	1.2466
Daily Pivot Point R1	1.2543
Daily Pivot Point R2	1.2561
Daily Pivot Point R3	1.2582

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.