-
GBPUSD overcomes 1.2500 key barrier.
-
RSI and MACD continue bullish bias.
-
The 20- and 50-day SMAs posted positive cross.
GBPUSD is looking to resume its bullish trend as the price is creating the third consecutive green day, surpassing the 200-day simple moving average (SMA) and the 1.2500 psychological mark. Also, the pair rose to its highest level of the last two months, with the technical oscillators suggesting strengthening upside momentum.
The RSI is above its 50 neutral mark and is approaching the overbought region, continuing the uptrend after it bottomed on September 27, while the MACD is keeping its footing above its trigger line within the positive area, both reflecting that buyers are still active.
If buyers stay in control, the door will open for the 1.2545 resistance level and the 50.0% Fibonacci retracement of the down leg from 1.3140 to 1.2035 at 1.2590. Running higher, the pair will have to face the 61.8% Fibonacci at 1.2720.
Should the bears press the price below the 38.2% Fibonacci of 1.2460 and the 200-day SMA, this may result in an aggressive downfall towards the 23.6% Fibonacci of 1.2300. If the latter gives away too, the decline could continue towards the bullish crossover between the 20- and the 50-day SMAs at 1.2250.
In a nutshell, despite the latest exciting rally in GBPUSD, there are some obstacles to consider before a real bullish trend reversal takes place with regards to the medium-term outlook.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0750, focus shifts to German inflation data
![EUR/USD extends gains above 1.0750, focus shifts to German inflation data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD extends gains above 1.0750 in European trading on Monday. The Euro gains as France's far-right National Rally (RN) party sweeps the first round of elections. Meanwhile, the US Dollar stays offered on renewed Fed rate cut bets. Focus shifts to German inflation and US PMIs.
GBP/USD rises further toward 1.2700, US PMI data eyed
![GBP/USD rises further toward 1.2700, US PMI data eyed](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-472155766_XtraSmall.jpg)
GBP/USD rises further toward 1.2700 in the European session on Monday. The US Dollar remains weighed down by dovish Fed expectations and the EUR/USD upsurge, keeping the pair underpinned ahead of the US ISM PMI data.
Gold price struggles for a firm intraday direction ahead of US PMI data
![Gold price struggles for a firm intraday direction ahead of US PMI data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold price oscillates in a narrow trading band on Monday amid mixed fundamental cues. Rising bets for a September Fed rate cut weigh on the USD and lend support to the metal.
Bitcoin is breaking above the falling wedge
![Bitcoin is breaking above the falling wedge](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Bitcoin breaking above the falling wedge pattern on Monday signals a bullish move, with Ethereum and Ripple poised to follow as they find support at key levels, paving the way for an upside rally in the days ahead.
French election: Public spending is not set to rise significantly
![French election: Public spending is not set to rise significantly](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/France/gorgeous-sunset-over-notre-dame-cathedral-55700598_XtraSmall.jpg)
Initial projections, alongside statements from Macron and Melenchon on Sunday, indicate that the most probable outcome is that no party will achieve an absolute majority, resulting in a 'hung parliament'.