GBP/USD Price Analysis: Stays directed to 1.3830 resistance confluence
- GBP/USD regains “above 200-DMA” status, edges higher of late.
- MACD conditions, rebound from 61.8% Fibonacci retracement favor bulls.
- Confluence of six-week-old descending trend line, 38.2% Fibo. challenges buyers.
GBP/USD holds onto 200-DMA breakout around 1.3765 amid a quiet start to Friday’s Asian session.
The cable pair’s recovery moves from 61.8% Fibonacci retracement (Fibo.) of December 2020 to June 2021 upside manages to cross the key SMA and 50% Fibo. hurdle, keeping the buyers hopeful. Also favoring the bulls is the MACD line that teases a bullish breakout over the signal line.
It should, however, be noted that a daily closing beyond convergence of the 1.5 month-old resistance line and 38.2% Fibo. becomes necessary for the GBP/USD prices to keep the latest upside momentum.
Following that, the 100-DMA level of 1.3925 and the late June's peak around the 1.4000 psychological magnet will be the key to follow.
Meanwhile, a pullback move will have to close below 200-DMA, surrounding 1.3714, followed by 50% Fibo. near 1.3690, to recall the GBP/USD sellers.
Even so, 61.8% Fibonacci retracement around 1.3560 and early December 2020 tops bear 1.3540 could act as filters to the south.
Overall, GBP/USD bulls are firming up controls but the key hurdle is yet to cross.
GBP/USD: Daily chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
