- GBP/USD gains traction for the seventh consecutive session on Friday.
- The intraday uptick stalled just ahead of the 1.2700 round-figure mark.
- Bulls struggled to find acceptance above the very important 200-DMA.
The GBP/USD pair gained traction for the seventh straight session on Friday and shot to near three-month tops in the last hour. The uptick was sponsored by the prevalent selling bias around the US dollar. Despite the supporting factor, the pair struggled to find bullish acceptance above the very important 200-day SMA and witnessed a modest intraday pullback of around 30-40 pips from the vicinity of the 1.2700 mark.
The mentioned level is closely followed by the 61.8% Fibonacci level of the 1.3515-1.1412 downfall, around the 1.2710-15 region, which if cleared decisively would be seen as a fresh trigger for bullish traders. The pair might then look to surpass an intermediate resistance near the 1.2740-50 region and aim to reclaim the 1.2800 mark. The momentum could further get extended towards the 1.2870-75 next major hurdle.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the oversold zone. The constructive set-up supports prospects for a further appreciating move. However, some repositioning trade ahead of Friday’s release of the closely watched US monthly jobs report might cap the upside. This, in turn, warrants some caution before placing any aggressive bullish bets.
On the flip side, any meaningful pullback now seems to find decent support near the 1.2600 mark, which if broken decisively, might turn the pair vulnerable to accelerate the fall towards the key 1.2500 psychological mark.
GBP/USD daily chart
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Technical levels to watch
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