- GBP/USD rallied over 120 pips from the 100-hour SMA support zone.
- Bulls now wait for a sustained move beyond the overnight swing highs.
- The 1.2900 mark might protect the downside ahead of the 1.2880 zone.
The GBP/USD pair once again showed some resilience below 100-hour SMA and recorded a strong intraday bounce of around 120 pips. The pair now seems to have stabilized near daily tops, just below mid-1.2900s as investors await the release of the closely watched Nonfarm Payrolls data from the US.
From current levels, immediate resistance is pegged near the overnight swing high, around the 1.2975-80 region. The mentioned barrier marks the 38.2% Fibonacci level of 1.3482-1.2676 recent downfall and should now act as a key pivotal point for short-term traders.
Technical indicators on hourly charts have been gaining positive traction and support prospects for additional gains. However, oscillators on the daily chart – though have recovered from the negative territory – are yet to confirm the bullish outlook and warrant some caution.
This makes it prudent to wait for some strong follow-through buying beyond the 38.2% Fibo. level before positioning for any further near-term appreciating move. The pair might then surpass the key 1.3000 psychological mark and test the 1.3025-30 horizontal resistance.
The momentum could further get extended towards the 50% Fibo. level, around the 1.3080 region, en-route the 1.3100 mark. A convincing breakthrough the mentioned resistance levels will set the stage for a move towards the 61.8% Fibo. level, around the 1.3175 region.
On the flip side, immediate support is now pegged near the 1.2900 mark ahead of the 23.6% Fibo. level, around the 1.2880 region. Failure to defend the mentioned support levels might turn the pair vulnerable to slide back towards challenging the 1.2820-15 support zone.
GBP/USD 1-hourly chart
Technical levels to watch
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