GBP/USD Price Analysis: Rallies to the highest level since early May, fast approaching 1.2500 mark

GBP/USD catches some fresh bids in the last hour and spiked to near one-month tops.
The set-up favours bullish traders and supports prospects for a move to 1.2500 mark.

Haresh Menghani FXStreet

The USD selling pressure picked up pace during the early North American session and lifted the GBP/USD pair to near one-month tops, further beyond mid-1.2400s in the last hour.

The intraday positive momentum assisted the pair to break through an important confluence resistance near the 1.2425-30 zone. The mentioned region comprised of 61.8% Fibonacci level of the 1.2644-1.2076 downfall and the top end of a two-week-old ascending trend-channel.

The near-term breakout already seems to have set the stage for an extension of the recent appreciating move and a possible move towards reclaiming the key 1.2500 psychological mark. The constructive outlook is further reinforced by bullish oscillators on the daily chart.

Meanwhile, technical indicators on hourly charts have moved on the verge of breaking into the overbought territory. This, in turn, warrants some caution at higher levels and might force traders to take some profits off the table near the 1.2500 level, capping the upside.

On the flip side, any meaningful pullback below the 1.2430-25 confluence resistance breakpoint now seems to find support near the 1.2400 mark. This is closely followed by the 1.2380-75 horizontal support, which should now act as a strong base for the major.

GBP/USD 4-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.2449
Today Daily Change	0.0107
Today Daily Change %	0.87
Today daily open	1.2342

Trends
Daily SMA20	1.2285
Daily SMA50	1.2322
Daily SMA100	1.2583
Daily SMA200	1.2669

Levels
Previous Daily High	1.2394
Previous Daily Low	1.2291
Previous Weekly High	1.2394
Previous Weekly Low	1.2164
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2355
Daily Fibonacci 61.8%	1.233
Daily Pivot Point S1	1.229
Daily Pivot Point S2	1.2239
Daily Pivot Point S3	1.2187
Daily Pivot Point R1	1.2394
Daily Pivot Point R2	1.2446
Daily Pivot Point R3	1.2497

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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