GBP/USD Price Analysis: Sets for a break above 1.2800 amid a positive market mood

GBP/USD is making efforts for shifting the auction above 1.2800 as the risk-appetite theme is in action.
The Pound Sterling is in the limelight as the BoE is expected to raise interest rates further.
GBP/USD has printed a fresh annual high of around 1.2790 after climbing above the horizontal resistance plotted at 1.2667.

Sagar Dua FXStreet

The GBP/USD pair is gathering strength for climbing above the round-level resistance of 1.2800 in the early European session. The Cable has already shown a solid rally and is expected to extend gains further as the risk appetite of the market participants is extremely solid.

S&P500 futures have recovered some losses, portraying a recovery in the overall market mood. The US Dollar Index (DXY) is oscillating in a narrow range above 102.00 after a massive sell-off. More downside seems solid as United States Employment conditions have eased further following the fourth consecutive addition in weekly jobless claims than expectations.

The Pound Sterling is in the limelight as the Bank of England (BoE) is expected to raise interest rates further to keep building pressure on stubborn United Kingdom inflation.

GBP/USD has printed a fresh annual high around 1.2790 after climbing above the horizontal resistance plotted from 27 May 2022 high at 1.2667. Advancing 20-period Exponential Moving Average (EMA) at 1.2558 is providing support to the Pound Sterling bulls. Forward resistance is plotted from 14 March 2022 low around 1.3000

The Relative Strength Index (RSI) (14) has climbed above 60.00, showing no signs of divergence and any kind of overbought situation. This indicates an activation of the bullish momentum.

For further upside, a confident break above 1.2800 will drive the Cable toward the round-level resistance at 1.2900 followed by 14 March 2022 low around 1.3000.

On the flip side, a break below May 31 low at 1.2348 would drag the asset toward May 25 low at 1.2308. Slippage below the latter would expose the asset to April 03 low at 1.2275.

GBP/USD daily chart

GBP/USD

Overview
Today last price	1.2787
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.2784

Trends
Daily SMA20	1.2476
Daily SMA50	1.2484
Daily SMA100	1.2319
Daily SMA200	1.2039

Levels
Previous Daily High	1.2786
Previous Daily Low	1.263
Previous Weekly High	1.259
Previous Weekly Low	1.2369
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.2726
Daily Fibonacci 61.8%	1.2689
Daily Pivot Point S1	1.268
Daily Pivot Point S2	1.2577
Daily Pivot Point S3	1.2524
Daily Pivot Point R1	1.2836
Daily Pivot Point R2	1.2889
Daily Pivot Point R3	1.2993

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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