GBP/USD has gained traction and advanced above 1.1900 during the European session. Although the pair retreated slightly, it stays in positive territory with the US Dollar struggling to gather strength amid a positive shift witnessed in risk sentiment.

GBP/USD managed to hold above the 50-period Simple Moving Average (SMA) on the four-hour chart following Monday's decline and recently climbed above the 20-period SMA, pointing to a bullish tilt in the short-term outlook. Additionally, the Relative Strength Index (RSI) indicator climbed above 50.

On the upside, 1.1900 (psychological level, static level) aligns as first resistance. In case buyers manage to flip that level into support, additional gains toward 1.1950 (static level, end-point of the uptrend) and 1.2000 (psychological level) could be witnessed.

First support is located at 1.1850 (50-period SMA) before 1.1800 (psychological level, static level) and 1.1750 (Fibonacci 23.6% retracement of the latest uptrend).

From a short-term technical perspective, GBPUSD is extending its consolidative phase between the 1.2000 and 1.1750 price range, awaiting a fresh impetus for a range breakout.

The bias remains skewed to the upside, as the 14-day Relative Strength Index (RSI) holds comfortable above the midline, despite the latest minor retreat.

Also, the bullish 21-Daily Moving Average (DMA) is looking to cut the horizontal 100DMA from below, adding credence to the bullish potential.

Buyers need to take out the intraday high at 1.1901 to revive the uptrend toward 1.1950 – the psychological level.

The next upside barrier is seen at the previous week’s high at 1.2028, above which a fresh rally toward the upper boundary of a five-week-old rising wedge, at 1.2128, will be challenged.

GBPUSD Completing Completion For Hawkish Maneuver

Nov 22 2022