GBPUSD extends the week-start retreat from a one-month high, after posting a two-week upside, as it braces for the UK employment numbers on Tuesday. The In doing so, the Cable pair holds onto the previous day’s pullback from a six-week-long horizontal resistance as RSI retreats from nearly overbought territory. Even so, the MACD indicator flashes bullish signals hence a downside appears limited unless breaking an upward-sloping support line from early March, close to 1.2420 by the press time. Following that, the 100-day Exponential Moving Average (EMA), near 1.2330, will give the last fight to the bulls before giving control to the sellers.
Meanwhile, a clear upside break of the aforementioned resistance zone, around 1.2580-85 at the latest, could quickly propel the GBPUSD price towards the yearly high marked in May near 1.2680. In a case where the Cable pair remains firmer past 1.2680, the 1.2700 and the 1.2800 round figures will act as intermediate halts during the likely run-up towards a 61.8% Fibonacci Extension (FE) of the pair’s March-May moves, close to 1.2850. It should be observed that the May 2022 peak near 1.2670 offers an additional upside filter.
Overall, GBPUSD is likely to remain bullish unless breaking 1.2330, even if today’s UK employment data and the US inflation numbers disappoint and drags the quote downwards.