- The cable is attempting to overstep its potential resistance at 1.2266.
- An establishment above the 50-EMA adds to the upside filters.
- The RSI (14) is trading back and forth in a 40.00-60.00 range, which signals a rangebound move.
The GBP/USD pair is displaying back and forth moves in a narrow range of 1.2236-1.2266 in the early Tokyo session. The asset has been gradually scaling higher after hitting a low of 1.2173 on Friday as risk-perceived currencies found significant interest.
An upside break of the cable from its previous range of 1.2173-1.2248 has underpinned the pound against the greenback. The pair is hovering near its crucial horizontal resistance placed from May 9 high at 1.2262. The trendline placed from March 5 high at 1.2663, adjoining the previous week’s high a 1.2400 will act as a major barricade ahead.
An establishment above the 50-period Exponential Moving Average (EMA) at 1.2233 is advocating bulls for further upside. However, the asset is still lower from 200-EMA at 1.2340, which signals that a downside bias persists.
The momentum oscillator, Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals a directionless move going forward.
Investors should consider a bullish move in the asset if it oversteps the above-mentioned trendline at 1.2300. This will send the asset towards the previous week’s high at 1.2400, followed by May 9 high at 1.2662.
Alternatively, greenback bulls could regain control if the asset drops below Friday’s low at 1.2173, which will send the asset towards the 18 May 2020 low at 1.2075. A breach of the latter will drag the cable towards 25 March 2020 high at 1.1973.
GBP/USD hourly chart
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