#GBPUSD @ 1.20542 remains sidelined after rising the most in seven weeks., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• GBP/USD remains sidelined after rising the most in seven weeks.
• UK PM Sunak manages to strike all-around acceptability with latest Brexit deal.
• Sluggish oscillators probe traders around previous resistance line.
• Key DMAs, support line challenge Cable bears despite snapping four-month uptrend in February.

The pair currently trades last at 1.20542.

The previous day high was 1.2066 while the previous day low was 1.1922. The daily 38.2% Fib levels comes at 1.2011, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1977, expected to provide support.

GBP/USD struggles to extend the Brexit deal-induced gains around 1.2050-60 during early Tuesday. Even so, the Cable pair defends the previous day’s rebound from the key technical levels while also keeping the upside break of a short-term key resistance line, now support.

It’s worth noting that the sluggish MACD and RSI conditions challenge the Cable pair buyers after the quote rose the most on a daily since early January. That said, the GBP/USD remains on the way to posting the first monthly loss in five.

On a different page, optimism surrounding UK Prime Minister Rishi Sunak’s Brexit deal keeps the GBP/USD buyers hopeful as most of the hard Brexiteers have so far praised the initial deal for the Northern Ireland Protocol (NIP) that needs UK Parliamentary approval.

Also read: UK PM Sunak: Found a way to end the uncertainty for Northern Ireland

Hence, recent inaction in the market pushes back the bearish bias surrounding the GBP/USD as it defends the previous day’s fundamental, as well as technical, catalysts that recalled the bulls on Monday.

As a result, the Cable pair is on the way to poking a downward-sloping resistance line from February 02, close to 1.2110 by the press time, unless it drops below the resistance-turned-support line near 1.2040.

Even if the quote drops below 1.2040, the 100-DMA and 200-DMA, respectively near 1.1960 and 1.1920, could challenge the GBP/USD bears. Also acting as a downside filter is an upward-sloping support line from early January, close to 1.1930 by the press time.

On the flip side, a successful break of the 1.2110 resistance line could propel the GBP/USD price toward the mid-February high surrounding 1.2270. However, the double tops marked near 1.2445-50 appear a tough nut to crack for the bulls afterward.

Trend: Further upside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2058 at the time of writing. Pair opened at 1.2058 and is trading with a change of 0.00% % .

The pair is trading below its 20 Daily moving average @ 1.2094, below its 50 Daily moving average @ 1.2147 , above its 100 Daily moving average @ 1.1951 and above its 200 Daily moving average @ 1.1928

The previous day high was 1.2066 while the previous day low was 1.1922. The daily 38.2% Fib levels comes at 1.2011, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1977, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1965, 1.1872, 1.1821
• Pivot resistance is noted at 1.2109, 1.2159, 1.2252

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