GBP/USD Technical Analysis: Bulls maintain their dominant position near multi-month tops
- GBP/USD adds to the overnight gains and rallies to seven-month tops.
- The technical set-up supports prospects for further appreciating move.
The buying interest around the British pound picked up some pace in the last hour and assisted the GBP/USD pair to break out of its Asian session consolidation phase.
The overnight sustained move above a resistance marked by the top end of over six-week-old descending trend-channel was seen as a key trigger for bullish traders.
This coupled with some follow-through buying beyond the key 1.30 psychological mark seemed to have led to a fresh wave of technical buying and remained supportive.
Meanwhile, the occurrence of a Golden Cross pattern on the daily chart, wherein 50-day SMA crossed above the very important 200-day SMA support prospects for additional gains.
Moreover, bullish technical indicators on the mentioned chart reinforce the constructive outlook, albeit slightly overbought conditions on hourly charts warrant some caution.
Hence, it will be prudent to wait for some near-term consolidation, or a modest pullback, before positioning for any further appreciating move toward the 1.3100 handle.
GBP/USD daily chart
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
