GBP/USD Price Analysis: Cable edges toward psychological 1.26 where a key Fib level lies

• GBP/USD rises 0.60% on Tuesday as the greenback is mixed against the majors.
• There are some bullish technical signs from the indicators but will the price stop at the 61.8% Fib level?.

GBP/USD 4-hour chart

It has been a strange day in the FX markets with the dollar very mixed against the other G6 currencies. For example, NZD/USD trades higher while AUD/USD is in the red and GBP/USD is positive while EUR/USD is struggling. Obviously there are days like this but we are used to seeing USD being risk-on and risk-off since the COVID-19 pandemic began. 

Back to the charts now and GBP/USD has broken to a new wave high on the 4-hour chart below. Now the price is heading toward the psychological 1.26 figure which matches up nicely with the 61.8% Fibonacci retracement zone. If the price does move lower from here it will be interesting to see if the previous resistance wave high at 1.2527 acts as a support zone. 

The indicators are both looking very bullish at the moment and why would they not. The MACD signal lines and histogram are above zero and the Relative Strength Index is in the overbought zone. The Relative Strength Index might be indicating the price is overstretched and might pull back before making another push higher.

If the bullishness is to continue and 1.26 gets broken then the next target could be the purple line at 1.2665 and then the high on the chart of 1.2813. On the downside, beyond the aforementioned previous wave high the next important support is at 1.2350 close to the 23.6% Fibonacci retracement. 

Additional levels