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MTrading Team • 2024-06-04

GBPUSD crosses key resistance to refresh 11-week high

GBPUSD crosses key resistance to refresh 11-week high

GBPUSD rises to the highest level since mid-March by crossing an 11-month-old descending resistance line, now immediate support near 1.2800. The bullish MACD signals and the Pound Sterling’s ability to trade successfully beyond the 100-SMA also underpin the upside bias. It’s worth noting, however, that the nearly overbought RSI (14) line challenges the quote’s further advances, highlighting the yearly peak marked in March around 1.2895, quickly followed by the 1.2900 threshold, as the key upside hurdles. In a case where the Cable remains firmer past 1.2900, the 1.3000 psychological magnet will be the last defense of the bears before directing buyers toward the late 2023 peak of surrounding 1.3145.

Conversely, a daily closing beneath 1.2800 will defy the GBPUSD pair’s latest resistance break. The same could direct the sellers toward a 61.8% Fibonacci retracement of the July-October 2023 downturn, near 1.2720. Even so, the Pound Sterling bears need to wait for a clear downside break of the six-week-old rising support line, close to 1.2655, as well as the 100-SMA level of 1.2635, to retake control. Should the Cable drop beneath 1.2635, it becomes vulnerable to drop toward February’s low marked around 1.2520.

Overall, GBPUSD gains the buyer’s attention as it clears the key upside hurdle. However, the room toward the north appears limited.

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