- GBP/USD picks up bids to reverse late Thursday’s pullback.
- Firmer MACD signals, sustained trading beyond key HMAs keep buyers hopeful.
- Bears need clear beak of 1.2315 to retake control.
GBP/USD grinds higher past 1.2400 during early Friday as it reverses the previous day’s correction ahead of the key US data. In doing so, the Cable bounces off an upward-sloping support line from Tuesday to print a three-day winning streak, even with mild gains.
Not only the quote’s rebound from the short-term key support line but the bullish MACD signals and successful trading beyond the key Hourly Moving Averages (HMAs) also suggest further upside for the quote.
However, a clear break of the descending resistance line from January 18, close to 1.2430 by the press time, appears necessary for the GBP/USD bulls to keep the reins.
Following that, the 1.2500 and the 1.2600 round figure may act as upside filters before directing the price to the May 2022 peak surrounding 1.2665.
On the flip side, a pullback move may initially falter around a convergence of the 50-HMA and the 100-HMA, near 1.2370 by the press time, a break of which could drag the GBP/USD pair to the aforementioned immediate support line near 1.2355.
In a case where the GBP/USD bears dominate past 1.2355, an ascending trend line from January 12, surrounding 1.2315 as we write, appears the last defense of the Cable pair buyers.
GBP/USD: Hourly chart
Trend: Further upside expected
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