GBP/USD Price Analysis: Overbought RSI prods Cable buyers around 1.2650
- GBP/USD struggles for clear directions after refreshing one-year high.
- Overbought RSI, easing bullish bias of MACD teases Cable pair sellers to aim for previous resistance line from April.
- Buyers will be off guard on 200-SMA breakdown.
GBP/USD treads water around 1.2630 while portraying the market’s anxiety ahead of the key UK data/events, amid Monday’s holiday in Britain.
That said, the Cable pair rise to the fresh one-year high in the last week after crossing an upward-sloping resistance line from early April. However, overbought RSI (14) line seems to challenge the quote’s further upside ahead of the key Bank of England (BoE) Monetary Policy Meeting, UK Gross Domestic Product (GDP) for the first quarter (Q1) of 2023 and the US Consumer Price Index (CPI) for April.
Not only the overbought RSI (14) line but recent easing in the bullish bias of the MACD also teases the short-term GBP/USD sellers ahead of the key data/events, as well as due to the UK’s holiday on Monday.
However, the aforementioned resistance-turned-support around the 1.2600 round figure restricts short-term downside of the GBP/USD pair.
Following that, an upward-sloping support line from mid-March and the 200-SMA, respectively near 1.2500 and 1.2430, will be crucial to watch as a break of which can recall the pair sellers.
Meanwhile, the May 2022 high of around 1.2665 appears immediate resistance for the Cable pair buyers to tackle to restore the market’s confidence. Following that, the 1.2700 round figure may prod the GBP/USD bulls before directing them to April 2022 lows around 1.2975.
GBP/USD: Four-hour chart
Trend: Pullback expected