GBPUSD is seeing bullish momentum gather pace following a double rejection at the 200-day moving average.
The British Pound is showing resilience in early Tuesday trading, buoyed by upbeat UK data from Monday and diminishing expectations of a rate cut by the Bank of England in May.
The recent upswing has been supported by a double bounce off the 200-day moving average (1.2591) on Friday and Monday. However, bearish signals from daily indicators, including negative momentum and a bearish alignment of the 10-day, 20-day, and 55-day moving averages, suggest the possibility of a potential slowdown in the recovery.
For a sustained bullish outlook, a daily close above the 10-day moving average (1.2637) and the upper boundary of the narrow daily cloud (1.2663) are considered essential. Furthermore, breaching the 1.2700 zone (which represents the 38.2% Fibonacci retracement of the bearish leg from 1.2893 to 1.2575, as well as the 20-day moving average) would strengthen the short-term market structure, paving the way for further recovery.
Res: 1.2663; 1.2700; 1.2734; 1.2772
Sup: 1.2637; 1.2591; 1.2575; 1.2518
