GBPUSD gains momentum at 1.2688, supported by a weaker USD and the Bank of England’s hawkish views.
During the early European session on Monday, the GBPUSD pair remains bullish. The pair’s rise is bolstered by the Bank of England’s (BoE) hawkish stance to remain tight for an extended term in order to drive inflation down to its objective. The major currency pair is presently trading near 1.2688, up 0.12% on the day.
GBPUSD Technical Outlook
The pair is trading above the 50- and 100-hour EMAs, while the RSI indicator is above 50.
The first upward barrier is at 1.2724, while the first support level is at 1.2637.
The four-hour chart indicates a positive outlook. The key pair GBPUSD is still trading above the 50- and 100-hour Exponential Moving Averages (EMAs). The upward trend is bolstered by the Relative Strength Index (RSI), which is above 50 and in positive zone.
The initial upward obstacle for GBPUSD will appear near the December 13 high of 1.2724. The critical juncture to watch is the meeting of a December 15 high and a psychological level in the 1.2790-1.2800 range. The upper boundary of the Bollinger Band at 1.2833 will act as an additional upward filter farther north. A break above the latter will result in a surge to a high of 1.2888 on July 28.
The initial support level, on the other side, is located near the 50-hour EMA at 1.2637. The next negative target is at 1.2597, which is close to the 100-hour EMA. Any subsequent selling below the latter will result in a decline to the Bollinger Band’s lower limit of 1.2515. The major contention level will be at the 1.2500 mark, which represents the December 13 low and the round mark.
