GBP/USD Price Analysis: Jumps to two-week tops, bulls challenge 61.8% Fibo. level

• A modest USD pullback assisted GBP/USD to regain positive traction on Monday.
• The momentum pushed the pair to a resistance marked by the 61.8% Fibo. level.
• RSI on hourly charts warrants some caution before placing aggressive bullish bets.

The intraday USD selling picked up pace heading into the North American session and pushed the GBP/USD pair to fresh two-week tops, around the 1.3875-80 region in the last hour.

A sustained move beyond the 1.3830-35 confluence hurdle was seen as a key trigger that prompted some technical buying. The mentioned area comprised of the 100-period SMA on the 4-hour chart and the 38.2% Fibo. level of the 1.4002-1.3671 recent leg down, which should now act as a pivotal point for short-term traders.

The GBP/USD pair was last seen hovering near the 61.8% Fibo. level and a sustained move beyond will set the stage for an extension of the recent bounce from multi-week lows. The constructive outlook is reinforced by the fact that technical indicators on the daily chart have just started moving into the positive territory.

That said, RSI (14) on hourly charts has moved on the verge of breaking into the overbought zone and warrants some caution before positioning for any further appreciating move. Market participants now look forward to the US ISM Services PMI to grab some short-term trading opportunities amid thin liquidity conditions.

Meanwhile, some follow-through buying has the potential to lift the GBP/USD pair further beyond the 1.3900 mark, towards testing the next major hurdle near the 1.3965 supply zone. The momentum could further get extended and assist bulls to aim back to reclaim the 1.4000 mark, levels not seen since March 18.

On the flip side, the mentioned confluence resistance breakpoint, around the 1.3830-35 region now seems to protect the immediate downside. Failure to defend the mentioned support might prompt some technical selling and turn the GBP/USD pair vulnerable to accelerate the slide to the 38.2% Fibo. level, around the 1.3800 mark.

GBP/USD 4-hourly chart

Technical levels to watch