GBP/USD technical analysis: 4H 100MA challenges immediate upside amid overbought RSI

4H 100MA, 11-week descending trend-line limit the GBP/USD pair’s near-term upside amid overbought RSI levels.
Sellers await a break of 1.2510/05 for fresh positions.

Anil Panchal FXStreet

The GBP/USD pair’s recent recovery is currently struggling with the 100-bar moving average (4H 100MA) while taking the rounds to 1.2545 on early Friday.

Not only repeated failure to cross the key short-term moving average (MA) but overbought conditions of the 14-bar relative strength index (RSI) also signals brighter chances of the quote’s pullback to 1.2510/05 area comprising multiple supports and June month low.

In a case where sellers dominate past-1.2505, July 09 low close to 1.2440 and current month bottom surrounding 1.2382 could be on their radars.

Alternatively, pair’s ability to rise beyond 4H 100MA level of 1.2551 will be tested by the 11-week old descending trend-line ranged since early-May, at 1.2594.

However, a successful break of 1.2594 opens the gate for the rally towards late-June lows close to 1.2660.

GBP/USD 4-hour chart

Trend: Pullback expected

1. R3 1.2732
2. R2 1.2645
3. R1 1.2597
PP 1.251
1. S1 1.2462
2. S2 1.2375
3. S3 1.2327

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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