- GBP/USD continued scaling higher for the second straight session on Tuesday.
- The set-up supports prospects for a move towards reclaiming the 1.2600 mark.
- Dip-buying should help limit any meaningful corrective slide to the 1.2500 level.
The GBP/USD pair built on the previous day’s strong intraday positive move and gained some follow-through traction for the second consecutive session on Tuesday. The pair maintained its bid tone through the early North American session and was last seen trading near one-month tops, just above mid-1.2500s.
The overnight upsurge assisted the pair to break through an important resistance near the 1.2450 region, marking the 23.6% Fibonacci level of the 1.1412-1.2648 positive move. This, in turn, might have already shifted the near-term bias back in favour of bullish traders amid the prevalent USD selling bias.
Meanwhile, technical indicators on the daily chart have again started gaining positive traction and support prospects for an extension of the bullish trajectory. Hence, a move back towards reclaiming the 1.2600 round-figure mark, en-route the very important 200-day SMA near the 1.2645-50 zone, now looks a distinct possibility.
On the flip side, any meaningful pullback might now be seen as a buying opportunity. This, in turn, should help limit the downside near the key 1.2500 psychological mark. That said, some follow-through selling might still drag the pair back towards 23.6% Fibo. level resistance breakpoint, near the 1.2460-50 region.
GBP/USD daily chart
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Technical levels to watch
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