GBP/USD Technical Analysis: 1.3180 holds the key to further upside

GBP/USD nears the May month top while showing a little momentum off-late.
Bullish MACD, sustained trading beyond October top support further upside.
Overbought RSI, May month high keep sellers hopeful.

Anil Panchal FXStreet

GBP/USD traders modestly changed around 1.3160 by the press time of early Asian session on Friday. That said, overbought conditions of the 14-day Relative Strength Index (RSI) and the recent stop in north-run make buyers doubtful.

As a result, sellers can look for entry below Wednesday’s high surrounding 1.3120 to revisit the 1.3015/10 region comprising October month high.

However, pair’s further declines can well divert the Bears to 61.8% Fibonacci retracement of March-September fall, at 1.2840.

Meanwhile, buyers are waiting for a sustained break of May month high of 1.3178, coupled with validation of further upside by pair’s rise past-1.3180, to target 1.3200 and 1.3270 numbers to the north. Increasing the odds of pair’s run-up are bullish signals from 12-bar Moving Average Convergence and Divergence (MACD).

It should also be mentioned that Bull’s dominance beyond 1.3270 enables them to challenge the yearly top, marked in March, surrounding 1.3385.

GBP/USD daily chart

Trend: Pullback expected

additional important levels

Overview
Today last price	1.316
Today Daily Change	0.0056
Today Daily Change %	0.43%
Today daily open	1.3104

Trends
Daily SMA20	1.2902
Daily SMA50	1.2753
Daily SMA100	1.2514
Daily SMA200	1.2698

Levels
Previous Daily High	1.3121
Previous Daily Low	1.2983
Previous Weekly High	1.2952
Previous Weekly Low	1.2827
Previous Monthly High	1.2986
Previous Monthly Low	1.2769
Daily Fibonacci 38.2%	1.3068
Daily Fibonacci 61.8%	1.3036
Daily Pivot Point S1	1.3018
Daily Pivot Point S2	1.2931
Daily Pivot Point S3	1.2879
Daily Pivot Point R1	1.3156
Daily Pivot Point R2	1.3208
Daily Pivot Point R3	1.3294

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.

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