- GBP/USD picks up bids to refresh intraday high; extends previous two-week winning streak.
- RSI conditions, six-week-old resistance line challenge Cable buyers.
- 21-SMA, ascending trend line from early January puts a floor under the price.
GBP/USD stays on the front foot as bulls keep the driver’s seat during early Monday morning in Asia, after a two-week uptrend. That said, the Cable pair renews its intraday high near 1.2410 while rising for the fifth consecutive day as of late.
In doing so, the quote extends the previous day’s rebound from the 21-SMA, around 1.2350 by the press time.
In addition to the 21-SMA, an upward-sloping support line from January 06, close to 1.2340 at the latest, also restricts the short-term downside of the Cable pair.
Should the quote drops below 1.2340 support, the 200-SMA level surrounding 1.2165 will act as the last defense of the GBP/USD pair buyers, a break of which won’t hesitate to give control to the bears targeting the 1.2000 psychological magnet.
It’s worth noting that the RSI (14) is near the overbought territory, which in turn highlights a 1.5-month-old resistance line near 1.2435 as the key challenge for the GBP/USD bulls.
Following that, the previous monthly high near 1.2450 will be crucial to watch as a clear upside break of the same could propel the quote toward May 2022 high near 1.2670.
In a case where the GBP/USD price remains firmer past 1.2670, the March 2022 low around the 1.3000 round figure will be in focus.
GBP/USD: Four-hour chart
Trend: Limited upside expected