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Forex News

Sticks to daily gains above mid-1.2300s

  • GBP/USD stages a goodish bounce from two-week lows amid a modest USD pullback.
  • Bulls are likely to wait for a move beyond the 1.2400 mark before placing fresh bets.

The GBP/USD pair continued scaling higher through the mid-European session and refreshed daily tops, around the 1.2385 region in the last hour.

A sustained move beyond the 23.6% Fibonacci of the 1.2648-1.2247 leg down was seen as a key trigger for bullish traders amid a modest USD pullback.

The pair recovered a major part of the overnight slide to two-week tops, albeit lacked any strong follow-through and remained below the 1.2400 mark.

The mentioned handle coincides with 38.2% Fibo. level and should now act as an important pivotal point for the pair’s next leg of a directional move.

Meanwhile, technical indicators on the 1-hourly chart have again started gaining some positive traction and support prospects for a further appreciating move.

However, oscillators on the daily chart are yet to catch up with the momentum and warrant some caution before placing any aggressive bullish bets.

Hence, it will be prudent to wait for a sustained move beyond the 1.2400 mark, above which the pair is likely to accelerate the move up towards the 1.2445-50 region.

GBP/USD 1-hourly chart

Technical levels to watch

 

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