Forex News

Bulls struggle to extend momentum beyond mid-1.2400s

  • GBP/USD gains some strong traction on Monday amid some aggressive USD selling.
  • Bulls await a sustained move beyond mid-1.2400s, ascending trend-line resistance.

The GBP/USD pair maintained its strong bid tone through the early North American session, albeit seemed struggling to build on the intraday positive move beyond mid-1.2400s.

The mentioned region coincides with the 50% Fibonacci level of the 1.2648-1.2247 recent downfall and should now act as a key pivotal point for the pair’s near-term trajectory.

This is closely followed by a near one-week-old ascending trend-line resistance, around the 1.2465 region, which if cleared might be seen as a fresh trigger for bullish traders.

Given that the pair is holding comfortably above 200-hour SMA, the prevailing selling bias surrounding the USD supports prospects for a further near-term appreciating move.

Meanwhile, oscillators on hourly charts maintained their bullish bias and have just started gaining traction on the daily chart, adding credence to the pair’s constructive outlook.

Some follow-through buying beyond the said barriers will reaffirm the bullish bias and assist the pair to aim back towards reclaiming the key 1.2500 psychological mark (61.8% Fibo.).

On the flip side, the 1.2400 round-figure mark now seems to protect the immediate downside, which if broken might accelerate the pullback further towards the 1.2670-65 horizontal support.

GBP/USD 1-hourly chart

Technical levels to watch

 

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