With its first daily gains in three days, GBP/USD validates the previous day’s bullish candlestick pattern above the 200-day Exponential Moving Average (EMA).
The three-week-old declining resistance line at the 1.2200 level, which is a target for GBP/USD buyers, is well within reach.
It’s important to keep in mind, though, that the monthly high and the top on December 19, 2022, which are located at 1.2210 and 1.2245, respectively, will need to confirm the Cable pair’s strength over 1.2200 before the bears can attempt to challenge the previous monthly peak of 1.2446.
GBP/USD sellers should hold off on opening trades until the quotation rises above the 200-day EMA level of 1.2110.
The monthly low of 1.1841 and the psychological magnet of 1.2000 might then amuse the bears.
GBP/USD prices are still falling past 1.1841, and a decline into the swing high of 1.1645 from late October cannot be ruled out.
|
Daily SMA20 |
1.2082 |
|
Daily SMA50 |
1.1999 |
|
Daily SMA100 |
1.168 |
|
Daily SMA200 |
1.2005 |
