- The cable has entered the highest auction area which was recorded in the downside journey.
- Bulls have crossed the 200-EMA for the first time in the past 11 weeks.
- The RSI (14) has established into the bullish range of 60.00-80.00 comfortably.
The GBP/USD pair is struggling to smash the psychological resistance of 1.1500 after a juggernaut rally. The asset is gathering momentum at elevated levels and is expected to continue its six-day winning streak after overstepping Tuesday’s high at 1.1490. The major witnessed a responsive buying action after forming a buying tail on September 26.
On a four-hour scale, the cable has entered into the demon’s arena where most of the trading activity took place while the downside journey of the asset. The major has poked the prior balanced area in a 1.1370-1.1770 range, which serves as the highest auction territory.
The asset has crossed the 200-period Exponential Moving Average (EMA) at 1.1400 for the first time after a period of 11 weeks. Also, a bullish crossover delivered by the 20 and 50-EMAs at 1.1051 adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has been established in the bullish range of 60.00-80.00, which indicates that bullish momentum has been activated.
A minor pullback to near September 19 low at 1.1355 will serve as a bargain buy to the market participants, which will drive the asset towards the psychological resistance at 1.1500, followed by an August 31 high at 1.1694.
On the flip side, a downside break of the September 30 low at 1.1235 will drag the cable towards September 28 high at 1.0916. A slippage below the latter will drag the asset further towards September 29 low at 1.0763.
GBP/USD four-hour chart
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