#GBPUSD @ 1.25006 bulls take a breather at 10-month high, seesaws after rising the most in three weeks., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• GBP/USD bulls take a breather at 10-month high, seesaws after rising the most in three weeks.
• Clear upside break of 1.2445-50 horizontal hurdle, bullish MACD signals favor Cable pair buyers.
• Rising wedge, overbought RSI teases sellers to take a risk and aim for 50-DMA, 100-DMA convergence.

The pair currently trades last at 1.25006.

The previous day high was 1.2424 while the previous day low was 1.2275. The daily 38.2% Fib levels comes at 1.2367, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2332, expected to provide support.

GBP/USD buyers sit tightly in the driver’s seat while riding along the lines of the highest levels since June 2022, sidelined near 1.2500 during early Wednesday.

The Cable pair marked the biggest daily gains in three weeks the previous day after crossing an important horizontal resistance comprising multiple tops marked since mid-December 2022, now immediate support around 1.2450-45. Adding strength to the upside momentum were the bullish MACD signals.

It’s worth noting, however, that the RSI (14) line is near the overbought territory and suggests a pullback in the GBP/USD prices before mark the next leg towards the north. Also teasing the Cable pair sellers is the existence of a one-month-old rising wedge bearish chart pattern, currently between 1.2550 and 1.2390.

Should the quote drops below 1.2390, it confirms the bearish formation and can refresh the 2023 bottom, around 1.1800 by the press time. However, a convergence of the 50-DMA and the 100-DMA, close to 1.2155-50 acts as an important support to watch during the anticipated fall.

On the flip side, a clear upside break of the 1.2550 hurdle, comprising the stated wedge’s top line, defies the bearish chart pattern and can propel the GBP/USD prices toward the May 2022 high of around 1.2665.

That said, the 1.2600 round figure and September 2020 low near 1.2675 act as extra upside filters for the Cable pair buyers to watch during the quote’s further upside.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.25 at the time of writing. Pair opened at 1.2413 and is trading with a change of 0.70% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2183, 50 SMA 1.215, 100 SMA @ 1.2136 and 200 SMA @ 1.1896.

The previous day high was 1.2424 while the previous day low was 1.2275. The daily 38.2% Fib levels comes at 1.2367, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2332, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2317, 1.2221, 1.2168
• Pivot resistance is noted at 1.2466, 1.2519, 1.2615

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