GBP/USD Price Analysis: Grinds below 1.2600 within fortnight-old bullish channel
- GBP/USD pares the biggest daily jump in three months at monthly peak.
- 12-day-old bullish channel, upbeat oscillators keep buyers hopeful.
- RSI conditions suggest retreat in Cable prices before the next run-up.
GBP/USD buyers take a breather at the highest level in one month, making rounds to 1.2550 during early Friday morning in Europe. In doing so, the Cable bulls pause after posting the biggest daily gain since early March the previous day.
While the above 50.0 levels of the RSI (14) line could be held responsible for the Pound Sterling’s latest retreat, the bullish MACD signals and a two-week-long rising trend channel keeps the buyers hopeful.
Hence, the quote’s latest pullback remains elusive unless it stays within the aforementioned channel, currently between 1.2600 and 1.2410.
That said, a short-term correction toward the 50-bar Exponential Moving Average (EMA) level of around 1.2420 can’t be ruled out.
In a case where the Cable pair breaks the 1.2410 support, the odds of witnessing a quick fall toward the previous monthly low of around 1.2310-05 can’t be ruled out.
Meanwhile, an upside break of the stated channel’s peak of 1.2600 may have a reason to worry unless the GBP/USD remains below the yearly high marked in May at around 1.2680.
Following that, the 61.8% Fibonacci Expansion (FE) of the Cable pair’s March-May moves, near 1.2850, will be in the spotlight.
Overall, GBP/USD remains on the bull’s radar but a pullback can’t be ruled out.
GBP/USD: Daily chart
Trend: Gradual 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.
