Market Analysis: GBP/USD Eyes Fresh Gains
GBP/USD started a fresh increase above the 1.2900 zone.
Important Takeaways for GBP/USD Analysis Today
– The British Pound is eyeing more gains above the 1.2970 resistance.
– There is a key bearish trend line forming with resistance at 1.2935 on the hourly chart of GBP/USD at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.2870 level. The British Pound started a steady increase above the 1.2900 resistance zone against the US Dollar, as discussed in the previous analysis.
The pair surpassed the 50% Fib retracement level of the downward move from the 1.2972 swing high to the 1.2879 low. The pair is now consolidating near the 1.2925 zone and the 1.2420 level and the 50-hour simple moving average.
If there is another decline, the pair could find support near the 1.2900 level. The first major support sits near the 1.2880 zone. The next major support is 1.2870.
If there is a break below 1.2870, the pair could extend the decline. The next key support is near the 1.2820 level. Any more losses might call for a test of the 1.2800 support.
Conversely, the bulls might aim for more gains. The RSI moved above the 50 level on the GBP/USD chart and the pair is now approaching a major hurdle at 1.2935 and the 61.8% Fib retracement level of the downward move from the 1.2972 swing high to the 1.2879 low.
There is also a key bearish trend line forming with resistance at 1.2935. An upside break above the 1.2935 zone could send the pair toward 1.2970. Any more gains might open the doors for a test of 1.2995.
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