GBP/USD Price Analysis: Gathers strength for a sustainable move above 1.2500

GBP/USD is hovering near 1.2500, gathering strength for a decisive breakout.
The USD Index has regained strength as investors are shifting their focus toward the Fed policy.
GBP/USD is consolidating in a range of 1.2436-1.2500 amid the absence of a critical trigger.

Sagar Dua FXStreet

The GBP/USD pair is consolidating near the psychological resistance of 1.2500 in the Asian session. The Cable is gathering strength for a sustained breakout above 1.2500 after a few failed attempts. Rising expectations of more interest rate hikes from the Bank of England (BoE) to arrest double-digit stubborn inflation are fueling fresh blood into the Pound Sterling.

The US Dollar Index (DXY) has regained strength and has jumped above 101.70 as investors are shifting their focus toward the monetary policy decision by the Federal Reserve (Fed), which will be announced next week.

GBP/USD is consolidating in a range of 1.2436-1.2500 on an hourly scale. The 20-period Exponential Moving Average (EMA) at 1.2483 is still providing support to Pound Sterling, indicating that the upside bias has not faded yet. A potential resistance is placed from April 14 high at 1.2545 while the downside is being cushioned near support plotted from April 10 low at 1.2344.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped back into the 40.00-60.00 range, signaling a lack of momentum.

A decisive move above April 13 high at 1.2537 will drive the asset towards to a fresh 10-month high at 1.2597, which is 08 June 2022 high. A breach of the latter will expose the asset to May 27 high at 1.2667.

On the flip side, a slippage below April 10 low at 1.2345 will expose the asset to March 30 low at 1.2294 followed by March 27 low at 1.2219.

GBP/USD hourly chart

GBP/USD

Overview
Today last price	1.2482
Today Daily Change	-0.0015
Today Daily Change %	-0.12
Today daily open	1.2497

Trends
Daily SMA20	1.2439
Daily SMA50	1.224
Daily SMA100	1.2209
Daily SMA200	1.1937

Levels
Previous Daily High	1.25
Previous Daily Low	1.2436
Previous Weekly High	1.2474
Previous Weekly Low	1.2354
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2476
Daily Fibonacci 61.8%	1.2461
Daily Pivot Point S1	1.2456
Daily Pivot Point S2	1.2414
Daily Pivot Point S3	1.2392
Daily Pivot Point R1	1.2519
Daily Pivot Point R2	1.2541
Daily Pivot Point R3	1.2583

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.

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