- GBP/USD picks up bids towards one-week-old falling trend line, 100-SMA.
- Upbeat RSI conditions, successful bounce off short-term resistance area signal further upside.
GBP/USD extends the previous day’s recovery moves to 1.3760, up 0.07% intraday, amid Wednesday’s Asian session. In doing so, the cable keeps a one-week-old consolidation pattern from the key horizontal support zone comprising lows marked since March 24.
However, bulls need to cross a confluence of 100-SMA and an immediate resistance line to justify the strength in targeting the 1.3800 threshold.
Although a clear upside past-1.3800 enables the GBP/USD buyers to challenge March 29 top near 1.3845, any further rise will be questioned by the monthly top of 1.3920.
On the contrary, pullback moves can recall 1.3730 and the 1.3700 round-figure on the chart before highlighting the 1.3670-75 horizontal support area.
Should the GBP/USD sellers dominate below 1.3670, February’s low near 1.3566 will gain the market’s attention.
GBP/USD four-hour chart
Trend: Further recovery expected
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