Technical Analysis – GBPUSD advances towards 2024 highs
GBPUSD rebounds from its 50-day SMA
The price jumps to its highest since June 12
Momentum indicators are tilted to the upside
GBPUSD has been slowly gaining ground following its bounce off the 50-day simple moving average (SMA) in late June. Moreover, the pair has entered a range that has previously rejected further advances during the past year, thus traders should be careful not to get overly optimistic.
Should upside pressures persist, the price may clear the 1.2816-1.2859 range, defined by the recent three-month peak and the December 2023 high. A violation of that zone could pave the way for the 2024 high of 1.2892. Failing to halt there, the pair could storm towards the July 2023 resistance of 1.2994.
Alternatively, if the price experiences a pullback, the April resistance of 1.2708 could act as the first line of defence. Further declines could then cease at the 1.2620-1.2598 territory, which is framed by the June and March lows. Even lower, the February bottom of 1.2517 may provide downside protection.
Overall, GBPUSD has been on the rise in the past few sessions, attempting to revisit its 2024 peaks. However, a failure to storm to fresh highs could easily trigger a pullback.
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