- The GBPUSD price is on course for a fourth consecutive daily gain against the Dollar. However, as Sterling's outlook improves, $1.4250 could be achievable.
The GBPUSD price is on course for a fourth consecutive daily gain against the Dollar. However, as Sterling’s outlook improves, $1.4250 could be achievable.
The GBPUSD pair is last trading at $1.3958, higher by $0.0056 (+0.40%).
The pound has staged an impressive comeback over the last 9 trading days. Worries over the Covid-19 Delta variant earlier this month had forced the GBPUSD price lower as the US dollar caught a safe-haven bid.
However, after bottoming out at $1.3572 on the 20th, the Pound has rallied almost 3% against its US counterpart. And if the current bullish momentum continues, Sterling may soon clear the psychological resistance at 1.4000. Should that happen, it could target June’s, three -year high.
Sterling vs Dollar outlook
Looking at the daily chart, we see that GBPUSd has climbed above the 50-day moving average at $1.3952 and the 100-day at $1.3923. The pound is also well clear of the important 200 DMA, which sits below the market at $1.3736.
However, both the 50 and 100 are within today’s range, and until the daily candle is completed, we won’t have confirmation of clearance.
If the GBPUSD price finishes the day above $1.3952, the obvious target is $1.4000. Aside from its status as a round big figure, it has proved a good support and resistance level this year.
Therefore, if cable convincingly clears $1.4000 on a closing basis, the bulls will aim for May’s $1.4250 high.
This bullish view is dependent on the price closing above the 50 and 100-day moving averages. A failure to breach this support suggests the bullish momentum is fading and would invalidate the immediate positive outlook.
GBPUSD price chart (daily)
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.