- GBP / USD was seen to consolidate strong intraday gains to the highest level since Feb 24.
- The slightly overbought RSI on the hourly charts capped the upside near an ascending channel hurdle.
- The setup appears tilted in favor of bullish traders and supports the prospects for additional earnings.
The pair GBP/USD it now appears to have entered a bullish consolidation phase and was seen hovering in a range close to 1.4200, or the highest level since February 24th.
The strongly offered tone around the US dollar, driven by dovish Fed expectations, helped the GBP / USD gain traction for the third consecutive session on Tuesday. The positive intraday momentum received an additional boost following the release of the mostly upbeat UK monthly employment details.
However, the overloaded conditions on the hourly charts capped the GBP / USD pair near a resistance marked by the upper bound of a month-long ascending channel. This makes it prudent to wait for a sustained break through the aforementioned barrier before positioning for any further short-term appreciation movement.
Meanwhile, the oscillators on the daily chart are still far from overbought territory and support the prospects of an eventual break through the aforementioned barrier. This, in turn, suggests that the path of least resistance for the GBP / USD pair remains amid a sustained sell bias in the USD.
On the other hand, the previous monthly swing highs, around the 1.4165-60 region, now appear to protect the immediate drop and any subsequent drop could be seen as a buying opportunity. This, in turn, should help limit the decline of the GBP / USD pair near 1.4100, at least for the moment.
4 hour chart
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
