GBP/USD Price evaluation: The denial of the important resistance line underlines the support convergence at 1.2150.

Market Analytics and Technical Considerations

Key Points

• Despite reaching its highest level in five months, GBP/USD is still inactive.
• 2 resistance line and an overbought RSI limit further upward movement.
• The confluence of the 200-DMA, a prior resistance level from mid – june, must be confirmed by the bear.

After reaching its highest point since late June the day before, the GBP/USD currency pair now hovers around the mid-1.2200s. In doing so, the Cable pair both justifies the price-negative technical signals and captures the market’s cautious attitude prior to the important US employment data.

As the quote suffers following a two-day rise that refreshed the multi-day peak, overbought circumstances of the Relative Strength Index (RSI) line, situated at 14, attract significant attention.

The upward-sloping resistance line from October, which is presently positioned near 1.2280, is another obstacle for the GBP/USD bulls to overcome.

In case a strong surge clears the 1.2280 barrier, the 1.2300 rounded number as well as the mid-June peak at 1.2410 could serve as further upside triggers to keep an eye on throughout the quote’s subsequent increases.

But unless the GBP/USD pair stays above the 1.2150 level, which is made up of the 200-DMA and the resistance line from late June that has now transformed into a support line, a retreat seems unlikely.

Furthermore, a relatively brief important support area near 1.1900, which may test the bears before handing them the upper hand, is formed by the confluence of the high for the month of August and the weekly bottom.

The spotlight will next shift to peaks that were recorded in September and October, correspondingly, around 1.1735 and 1.1645.

IMPORTANT LEVELS