- April 13, 2020
- Posted by: Analysis Team
- Category: Forex News
GBP/USD gains some strong positive traction and breaks through the 1.2480-85 resistance.
A subsequent strength beyond the 1.2500 mark now supports prospects for additional gains.
The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked to one-month tops, around the 1.2530 region in the last hour.
A sustained move beyond the 1.2480-85 horizontal resistance turned out to be one of the key factors that prompted some aggressive short-covering move.
A subsequent strength beyond the key 1.2500 psychological mark might now be seen as a fresh trigger for bullish traders and supports prospects for additional gains.
Hence, some follow-through positive move, towards testing 50-day SMA around the 1.2585 region, now looks a distinct possibility amid some USD selling bias.
Meanwhile, the fact that technical indicators on the daily chart have just started gaining positive momentum further adds credence to the bullish outlook.
However, oscillators on hourly charts have already moved on the verge of breaking into the overbought territory and warrant some caution for aggressive traders.
GBP/USD 1-hourly chart