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MTrading Team • 2024-05-28

Overbought RSI, 1.2810 hurdle will test GBPUSD bulls at nine-week high

Overbought RSI, 1.2810 hurdle will test GBPUSD bulls at nine-week high

GBPUSD rises for the third consecutive day while refreshing the two-month high. In doing so, the Cable pair cheers a pullback in the US Dollar, as well as the recent hawkish commentary from the Bank of England (BoE) officials. However, the overbought RSI (14) conditions will join a downward-sloping resistance line from July 2023, close to 1.2810 by the press time, to test the buyers. In a case where the quote remains firmer past 1.2810, the yearly high marked in March around 1.2895, quickly followed by the 1.2900 threshold, will precede the 1.3000 psychological magnet to attract the bids.

Alternatively, the 61.8% Fibonacci retracement of the GBPUSD pair’s July-October downside, near 1.2720, acts as immediate support to watch during a fresh pullback. Following that, April’s high near 1.2710 and the 100-SMA level surrounding 1.2630 should lure the Pound Sterling bears. It’s worth noting, however, that the Cable pair’s bearish trend remains elusive unless witnessing a daily closing beneath a convergence of the 50-SMA and a five-week-old rising support line, close to 1.2580 as we write.

Overall, the GBPUSD pair marches toward the key upside hurdle as most traders return to their desks after a long weekend in the US and the UK.

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