GBP/USD Price Analysis: Prods monthly resistance near 1.2600 ahead of US NFP
- GBP/USD picks up bids to cross short-term key resistance line during three-day uptrend.
- Sustained trading beyond 21-DMA, upbeat RSI (14) keeps Cable buyers hopeful.
- Pound Sterling bears need to crack 1.2320 support confluence to retake control.
GBP/USD bulls keep the reins at the highest levels in 11 months as they poke a one-month-old resistance line near 1.2600 on early Friday. In doing so, the Cable pair rises for the third consecutive day despite sticking to mild gains amid the cautious mood ahead of the US Nonfarm Payrolls (NFP) data for April.
Given the Pound Sterling’s successful trading above the 21-DMA support, around 1.2470 at the latest, the pair buyers are hopeful of crossing the immediate upside hurdle. Adding strength to the bullish bias is the above 50 levels of the RSI (14) line, not overbought.
With this, the GBP/USD buyers are well set to challenge the mid-2022 peak of around 1.2665, which in turn highlights the 1.2700 round figure for them.
Meanwhile, a downside break of the 21-DMA support of 1.2470 isn’t an open welcome to the GBP/USD pair sellers as a convergence of an upward-sloping trend line from September 2022 and a descending trend line from late 2022, close to 1.2320, appears a tough nut to crack for the bears.
It’s worth noting that the 1.2300 round figure and August 2022 high of around 1.2290 adds to the list of downside filters for the Cable pair.
Overall, GBP/USD is like to grind higher unless the US jobs report offer positive surprise.
Also read: US April Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises
GBP/USD: Daily chart
Trend: Further upside expected