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GBP/USD Price Analysis: Monthly Resistance Near 1.2600 Ahead of US Nonfarm Payrolls
During a three-day uptrend, GBP/USD gains offers to surpass a key short-term resistance line. Continued trading above the 21-DMA and an optimistic RSI (14) encourage Cable purchasers. To regain control, Pound Sterling bears must breach the 1.2320 support confluence.
On Friday morning, GBP/USD buyers poke a one-month-old resistance line near 1.2600, maintaining control at the highest levels in 11 months. In doing so, the Cable pair climbs for a third consecutive day, despite modest gains and a cautious mood preceding the US Nonfarm Payrolls (NFP) report for April.
Given the Pound Sterling's successful trading above the 21-day simple moving average (SMA) support, around 1.2470 at the latest, purchasers of the pair are optimistic about surpassing the immediate upside barrier. The above-50 levels of the RSI (14) line, which are not overbought, strengthen the bullish bias.
With this, GBP/USD investors are well positioned to challenge the peak of 1.2665 around the middle of 2022, which highlights the 1.2700 round number for them.
In the meantime, a break below the 21-day moving average support of 1.2470 would not be greeted with open arms by GBP/USD sellers, as the convergence of an upward-sloping trend line from September 2022 and a downward-sloping trend line from late 2022, near 1.2320, appears to be a difficult nut to crack.
Notably, the round number 1.2300 and the August 2022 high near 1.2290 are added to the list of downside filters for the Cable pair.
Overall, GBP/USD pair is likely to climb unless the US employment report provides a positive surprise.
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