GBP/USD Price Update:
- Cable remains inside a rangebound, capping further gains.
- Technical oscillators remain in the positive territory, building expectations for further gains on Sterling.
GBP/USD Price Update: Still hovering inside a range, capped by the 1.30 level
The price action in the Cable remains stuck in a rangebound across the board. It seems as if the 200 SMA at the 4H chart is setting the tone on a short-term basis. A bullish trend line was formed and projected from the lows of October, where dynamic support is found.
The range, however, is still capping further gains, while also limiting losses ahead of the pair. Currently, GBP/USD is trading in the 1.2900 neighbourhood, posting fresh lows, which saw limited action in the financial markets on the US session.
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Focus on the 1.34 handle
The resistance level of 1.3000, which is a critical psychological barrier, is helping to add selling pressure as the pair attempted to test it. Furthermore, the dynamic support offered by the 200 SMA is giving somewhat of a boost to the bulls’ force. If it breaks above the hurdle, it could point towards the 1.3181 zone, where the sellers will be waiting to hurt the pair on a short-term basis.
Once that level has been cleared out by the bullish tone, Cable will look to the 1.3306 level as the next tough nut to crack, ahead of 1.3400 (round-figure). The current trend line is assisting in guiding the path for the pair on a mid-term basis.
Bearish short-term scenario
There are signs of weakening in the current stage, but the 200 SMA is still blocking the bears’ advance. However, if the pair manages to break below the 1.2773 level, then it would confirm a trend line’s breakout. Opening the doors to test the 1.2579 level.
Moreover, if a consolidation below the 1.2579 zone occurs in the coming days, all eyes will be on the 1.2398 level, ahead of the lows from October. The technical oscillators are still hovering within the positive territory, signalling further gains for the Sterling.