GBP/USD technical analysis: Breaks 5-week old resistance-line while aiming 200-bar MA

Break of GBP/USD immediate resistance-line favors further upside to 200-bar MA.
Overbought RSI might recall sellers if prices dip below 23.6% Fibo.

Anil Panchal FXStreet

In addition to flashing a fresh weekly high, the GBP/USD pair also clears a near-term trend-line resistance as it takes the bids around 1.2693 heading into the British market open on Thursday.

While a sustained break of 1.2690 resistance-line enables the quote to rise further towards 200-bar moving average (MA) level of 1.2741, 38.2% Fibonacci retracement of May-June downpour, at 1.2763, may question additional increases.

Further, May 21 high of 1.2815 and 50% Fibonacci retracement of 1.2842 can please buyers during a rally past-1.2763.

On the downside, 23.6% Fibonacci retracement level of 1.2666 offers immediate support to watch if overbought levels of 14-bar relative strength index (RSI) play its role.

In a case where sellers slip in after 1.2666, 1.2610 and May-end low of 1.2560 can entertain them ahead of questioning the declines with the latest bottom close to the 1.2500 mark.

GBP/USD 4-Hour chart

Trend: Bullish

1. R3 1.2831
2. R2 1.2753
3. R1 1.2698
PP 1.262
1. S1 1.2566
2. S2 1.2488
3. S3 1.2433

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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