- GBP/USD struggles to extend four-day uptrend at weekly high.
- 50-DMA guards Cable’s immediate upside ahead of multi-month-old ascending resistance line.
- Previous resistance line from mid-May, impending bull cross on MACD challenge Pound Sterling sellers.
- Cautious mood ahead of top-tier data/events checks pair’s momentum but bulls stay hopeful.
GBP/USD grinds near weekly high as bulls and bears jostle ahead of the key data/events scheduled for publishing on Thursday. That said, the Cable pair makes rounds to 1.2450 during early Thursday morning in Europe amid the latest retreat in the US Dollar, mainly due to the cautious optimism and receding hawkish Fed bias. It’s worth noting that the increasing hopes of the Bank of England’s (BoE) further rate increases also favor the Pound sterling buyers.
Technically, the 50-DMA hurdle of 1.2450 restricts the immediate upside of the GBP/USD pair amid a steady RSI (14) line. However, an impending bull cross on the MACD and the quote’s sustained break of a one-week-old descending resistance line allow the buyers to remain hopeful.
Although the aforementioned catalysts suggest the GBP/USD pair’s run-up beyond the 50-DMA immediate hurdle of around 1.2450, an upward-sloping resistance line from late 2022, close to 1.2465 by the press time, could challenge the Cable pair buyers afterward.
Following that, the mid-April high of nearly 1.2550 will act as the last defense of the Pound Sterling bears.
On the contrary, GBP/USD pullback remains elusive unless staying beyond a two-week-old previous resistance line, around 1.2400 at the latest.
In a case where the GBP/USD pair drops below 1.2400, the latest trough surrounding 1.2305 will lure the Cable bears.
Should the Pound Sterling remains weak past 1.2305, the 50% and 61.8% Fibonacci retracement of its March-May upside, respectively near 1.2240 and 1.2135, will be in focus.
GBP/USD: Daily chart
Trend: Further upside expected
Comments are closed.