GBP/USD Price Analysis: Further upside hinges on 1.2550 breakout and US NFP
- GBP/USD clings to mild gains at the highest levels in two weeks.
- 2.5-month-old horizontal resistance, overbought RSI line challenges Cable byers.
- 200-SMA, bullish MACD signals put a floor under Pound Sterling price.
- US NFP becomes more important hawkish Fed bets run out of steam.
GBP/USD bulls seat idle on the driver’s seat as the all-important US NFP looms on Friday. That said, the Cable pair sticks on mild gains around 1.2535 during the six-day uptrend that recently prod the highest levels since May 16.
Also read: GBP/USD: Cable grinds above 1.2500 as BoE vs. Fed play intensifies, US jobs report eyed
It’s worth noting that the Pound Sterling pair’s successful upside break of the 200-SMA, at 1.2475 by the press time, keeps the buyers hopeful.
However, a horizontal area comprising multiple levels marked since April 14 constitutes the 1.2540-50 resistance zone, which in turn challenges the immediate GBP/USD upside amid the overbought RSI (14) line.
Hence, the Cable pair’s further upside hinges on its ability to cross the 1.2550 hurdle, backed by the downbeat US employment report for May.
The same will allow the GBP/USD bulls to pierce late April highs of around 1.2585 in search of refreshing the yearly high, currently around 1.2680.
On the flip side, a sustained break of the 200-SMA level of 1.2475 could recall the short-term Cable bears who can aim for the latest trough surrounding 1.2310 in a case where the US NFP offers a positive surprise.
In a case where the GBP/USD remains bearish past 1.2310, multiple hurdles around 1.2300 and 1.2270 can challenge the sellers.
GBP/USD: Four-hour chart
Trend: Limited upside expected
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.
