GBPUSD – Bullish Momentum Sustained Above Rising Daily Cloud

GBPUSD stays on the front foot, extending its recovery on Friday morning after breaking and closing above the top of the rising daily cloud.

Diminishing fears of a US recession and strong Chinese economic data have revived risk sentiment, while the pound is supported by diverging US/UK monetary policies. Expectations for Fed rate cuts this year have outpaced those for the BoE, keeping sterling buoyant.

Fresh gains have tested barriers at 1.2754/60 (Fibo 23.6% of 1.3044/1.2664 / falling daily Tenkan-sen). A daily close above these levels would strengthen developing bullish signals, forming a reversal pattern on the daily chart.

However, mixed daily studies lack a clear directional signal (negative momentum, mixed MA setup, and north-heading RSI).

The near-term bias is likely to stay with the bulls as long as the price remains above the rising daily cloud. An extension through pivotal barriers at 1.2780 / 1.2810 (55DMA / Fibo 38.2%) is needed to confirm the continuation of the recovery.

Conversely, if the daily cloud is penetrated (with the top at 1.2715), the near-term structure could weaken, exposing lower pivots at 1.2685/58 (converging 100/200DMA’s), and their loss would turn the outlook bearish.

Res: 1.2739; 1.2760; 1.2780; 1.2815
Sup: 1.2754; 1.2715; 1.2685; 1.2658