In a turbulent range below the critical EMA, the GBP/USD consolidates recent gains.
Buyers remain optimistic due to positive momentum and prolonged trading above key supports.
During a sluggish Asian session on Thursday, the GBP/USD seesaws between 1.3865 and 1.3850. The cable pair had broken a two-day downtrend the day before, but it couldn’t break beyond the 100-day EMA barrier.
Nonetheless, the upward sloping Momentum line, when combined with the quote’s successful trading above the three-month-old support line and 200-day EMA, favors buyers.
As a result, a clear breach of the 100-day EMA, which is now at 1.3890 by press time, will function as a catalyst for the pair’s run-up to challenge the monthly top near 1.3910, as well as the 1.4000-4010 significant resistance zone, which includes multiple highs set since March.
Early June’s lows near 1.4075 may test the pair’s buyers if the GBP/USD rises past 1.4010.
On the other hand, during the quote’s decline, the 1.3800 level provides immediate support, and if broken, the pair might be dragged to an ascending trend line from April 09, around 1.3740.
It should be highlighted, however, that a break below 1.3740 will require confirmation from the 200-day EMA level of 1.3690 in order to target February’s bottom of 1.3565.
To summarize, GBP/USD bulls are bracing for more gains, but they’ll have to wait for the UK’s June Claimant Count Change and Unemployment Rate data.
Recovery is predicted to continue./n
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