Search ForexCrunch

  • GBP/USD remains poised for additional gains amid favorable technicals.
  • 200-HMA and bullish crossover keep the buyers hopeful.
  • 100-HMA at 1.3625 is on sight amid bullish RSI.

GBP/USD is setting the stage to extend Monday’s recovery, with the near-term technical setup favoring the bulls.

On the hourly chart, the cable has entered a phase of consolidation around 1.3600. The bulls have managed to defend the 200-hourly moving average (HMA) support at 1.3598, keeping the prospects of further upside in place.

Also, a bullish crossover is confirmed on the said time frame, with the 21-HMA having pierced the 50-HMA from above. The bull cross also adds credence to a likely move higher.

The Relative Strength Index (RSI) points north while above the midline, allowing room for more gains.

Therefore, the 100-HMA barrier at 1.3625 comes as the first line of resistance, above which the 1.3650 psychological level could be challenged.

On the flip side, acceptance below the 200-HMA could call for a test of the critical support at 1.3589, where the 21 and 50-HMAs intersect.

Further south, Friday’s low of 1.3572 could be challenged while Monday’s low of 1.3519 remains the last line of defense for the bulls.

GBP/USD: Hourly chart

GBP/USD: Additional levels