GBP/USD Price Analysis: Cable turns defensive above 1.2600 on BoE “Super Thursday”
|- GBP/USD seesaws around the highest levels since April 2022, prods two-day uptrend.
- Clear upside break of five-week-old hurdle, firmer RSI (14) line keeps buyers hopeful.
- Weekly descending resistance line, bearish MACD signals and pre-BoE caution challenge Cable buyers.
- Bulls seek 1.2700 breakout to keep the reins; downside break of 1.2600 can lure intraday sellers.
GBP/USD bulls take a breather around 1.2630 amid the early hours of the Bank of England (BoE) inspired “Super Thursday”. That said, the Cable pair rose to a 13-month high the previous day while bouncing off the resistance-turned-support line stretched from early April.
The Pound Sterling’s recovery from the previous resistance line also gained support from the firmer RSI (14) line, not overbought. However, the bearish MACD signals and a downward-sloping resistance line from Monday, close to 1.2635 by the press time, prod the Cable buyers.
Even if the GBP/USD bulls manage to cross the 1.2635 trend line resistance, the latest high of around 1.2680 and the 1.2700 round figure may challenge the quote’s further upside.
Following that, a run-up towards the early April 2022 low surrounding 1.2975 and then to the 1.3000 psychological magnet can’t be ruled out.
On the flip side, a clear downside break of the aforementioned resistance-turned-support near 1.2600 can trigger intraday selling of the GBP/USD pair.
In that case, a three-week-long ascending trend line and the 200-SMA, respectively near 1.2500 and 1.2460, can act as the final defense of the GBP/USD buyers.
Overall, GBP/USD buyers keep the reins despite the latest inaction. However, the upside momentum needs validation from the BoE.
Also read: Bank of England Preview: A risk event for the GBP/USD rally
GBP/USD: Four-hour chart
Trend: Further upside expected
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