- GBP/USD is trading lower around 1.2685 on the strength of the USD.
- The pair maintains a bullish outlook above the key EMA.
- The key resistance level is seen in the 1.2700-1.2710 zone; the initial support level is at 1.2650.
The GBP/USD pair halts its two-day winning streak during the European session on Tuesday. The pair gives ground amid the modest recovery of the US Dollar (USD). This week the report on the labor market will be published. At the time of writing, the GBP/USD pair is trading at 1.2685, down 0.04% on the day.
Technically, GBP/USD remains bullish as the pair is above the 100 EMA on the 4-hour chart. Notably, the Relative Strength Index (RSI) is above the midline of 50, indicating that the path of least resistance is to the upside.
The potential resistance level for the pair is observed in the region of 1.2700-1.2710, which represents the confluence of the upper boundary of the Bollinger Bands, a round psychological level and the March 4 high. A break above this level would pave the way towards the January 31 high at 1.2750. If continuation buying occurs, a rally to the January 12 high at 1.2785 will occur.
To the downside, the initial support level is near the 100 EMA at 1.2650. Further down, the next bearish target will emerge near the lower boundary of the Bollinger Bands at 1.2612. Another bearish filter to watch is the February 20 low at 1.2580, followed by the December 11 low at 1.2535.
GBP/USD 4-hour chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
