#GBPUSD @ 1.25487 pares the biggest daily jump in three months at monthly peak., @nehcap view: Gradual upside expected (Pivot Orderbook analysis)

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• GBP/USD pares the biggest daily jump in three months at monthly peak.
• 12-day-old bullish channel, upbeat oscillators keep buyers hopeful.
• RSI conditions suggest retreat in Cable prices before the next run-up.

The pair currently trades last at 1.25487.

The previous day high was 1.2561 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2512, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide support.

GBP/USD buyers take a breather at the highest level in one month, making rounds to 1.2550 during early Friday morning in Europe. In doing so, the Cable bulls pause after posting the biggest daily gain since early March the previous day.

While the above 50.0 levels of the RSI (14) line could be held responsible for the Pound Sterling’s latest retreat, the bullish MACD signals and a two-week-long rising trend channel keeps the buyers hopeful.

Hence, the quote’s latest pullback remains elusive unless it stays within the aforementioned channel, currently between 1.2600 and 1.2410.

That said, a short-term correction toward the 50-bar Exponential Moving Average (EMA) level of around 1.2420 can’t be ruled out.

In a case where the Cable pair breaks the 1.2410 support, the odds of witnessing a quick fall toward the previous monthly low of around 1.2310-05 can’t be ruled out.

Meanwhile, an upside break of the stated channel’s peak of 1.2600 may have a reason to worry unless the GBP/USD remains below the yearly high marked in May at around 1.2680.

Following that, the 61.8% Fibonacci Expansion (FE) of the Cable pair’s March-May moves, near 1.2850, will be in the spotlight.

Overall, GBP/USD remains on the bull’s radar but a pullback can’t be ruled out.

Trend: Gradual upside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2554 at the time of writing. Pair opened at 1.256 and is trading with a change of -0.05% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2437, 50 SMA 1.2464, 100 SMA @ 1.2307 and 200 SMA @ 1.2011.

The previous day high was 1.2561 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2512, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2475, 1.239, 1.2347
• Pivot resistance is noted at 1.2603, 1.2646, 1.2731

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