GBP/USD Price Analysis: Exceeds 38.2% Fibo retracement and 200-EMA, 1.2700 eyed
- A bullish reversal has been triggered as the asset has overstepped 38.2% Fibo retracement.
- The asset is comfortably balancing above the 200-EMA.
- The RSI (14) has shifted into a 60.00-80.00 range, which adds to the upside filters.
The GBP/USD pair is sensing a mild selling pressure near 1.2660 after a vertical upside move in the Asian session. The cable has remained in the grip of bulls after hitting the monthly lows at 1.2155. A two-day winning streak has been continued by the pound bulls on Friday after overstepping Thursday’s high at 1.2621.
On a four-hour scale, the cable has overstepped 38.2% Fibonacci retracement (which is placed from March 23 high at 1.3300 to May 13 low at 1.2155) at 1.2590. Usually, overstepping of 38.2% Fibo retracement is considered as a bullish reversal in the counter.
The asset has comfortably established above the 200-period Exponential Moving Average (EMA) at 1.2613, which adds to the upside filters. Also, the asset holds above the 50-EMA near 1.2500.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals the strength of the sterling bulls.
A minor pullback move towards the 200-EMA at 1.2613 will be an optimal buying opportunity for investors, which will drive the major towards Friday’s high at 1.2667, followed by the round-level resistance at 1.2700.
On the flip side, the greenback bulls could regain control if the asset drops below weekly lows at 1.2471. An occurrence of the same will drag the asset towards 23.6% Fibo retracement at 1.2415, followed by May 9 low at 1.2260.
GBP/USD hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
