GBP/USD – Advances amid positive sentiment, bull’s eye 1.2800
- GBP/USD climbs to 1.2780, supported by improved risk appetite and technical indicators pointing upward.
- Buyers target resistance at 1.2800; surpassing this could expose further key levels including the 200-day SMA at 1.2820.
- Downside risks persist with potential support at the December 2 low of 1.2616 and November 22 low at 1.2486 if declines resume.
The British Pound registered gains of 0.33% against the Greenback on Monday, despite the lack of a catalyst aside from an improvement in risk appetite. The GBP/USD trades at 1.2780 after bouncing off daily lows of 1.2716.
GBP/USD Price Forecast: Technical outlook
The GBP/USD is printing a leg-up following the over 4% loss following the US Presidential Elections, which witnessed President-elect Donald Trump’s victory. Momentum shifted bullish, as shown by the Relative Strength Index (RSI), which turned bullish and aimed upwards.
Buyers must clear the 1.2800 figure before challenging the 200-day Simple Moving Average (SMA) at 1.2820. If surpassed, the next stop would be the 50-day SMA at 1.2878, 1.2900, and the 100-day SMA at 1.2963.
Conversely, if sellers keep the GBP/USD from reaching 1.2800 and drag towards the 1.2700 figure, it would exert downward pressure on the pair. A breach of the latter will expose the December 2 swing low of 1.2616, followed by the November 22 major support at 1.2486.
GBP/USD Price Chart – Daily
