- The pair continues to show some resilience near 61.8% Fibo. level.
- Bulls await a sustained move beyond the overnight swing high.
The GBP/USD pair once again showed some resilience below the 1.2200 round-figure mark on Thursday and witnessed a solid rebound from support marked by 61.8% Fibonacci level of the 1.1958-1.2583 recent strong move up. The intraday buying interest picked up some pace in the last hour and lifted the pair to fresh session tops, levels beyond mid-1.2200s.
The mentioned region coincides with 50% Fibo. level and is closely followed by 200-hour SMA near the 1.2285 region – overnight swing high. A sustained move beyond the mentioned barriers might be seen as a key trigger for bullish traders and set the stage for a further intraday appreciating move towards 38.2% Fibo. level resistance – around the 1.2345 region.
Meanwhile, technical indicators on the 1-hourly chart have been scaling higher and also recovered from the negative territory on the 4-hourly chart, reinforcing the intraday bullish bias. However, oscillators on the daily chart maintained their bearish bias and warrant some caution before placing any aggressive bullish bets amid persistent Brexit-related uncertainties.
Alternatively, rejection slide from the current resistance area, leading to a subsequent slide below the 1.2235 horizontal zone might now accelerate the slide back towards the 1.2200 handle. Failure to defend the mentioned 61.8% Fibo. level support might inspire bears to drag the pair further towards the 1.2160 intermediate support ahead of the 1.2110-1.2100 region.
GBP/USD 1-hourly chart
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