- GBP/USD to stretch gains above 1.3200.
- The 21-hour moving average gives upside fillip.
- Hourly RSI is in bullish mode as markets wait for Powell speech.
GBP/USD continued its consolidation in the European session after a similar price action during the Asian session, on Thursday. The pair had witnessed a sharp up-move to 1.3220 in yesterday’s US session.
GBP/USD is in the upper region of the rising channel formation in the current week and holds firmly above the 21-hourly Simple Moving Average near 1.3198.
Further upside action will test the rising trendline resistance at 1.3238, supported by the hourly RSI of 62.20 – a bullish reading.
The upside move has less resistance compared to a downside action: the immediate support is at the upward sloping 50-HMA of 1.3161, in case 21-hour MA fails at the task.
Further support is available at 1.3147, where the horizontal 200-HMA and rising trendline meet. If the pair falls below this level, then it could rest at 100-HMA of 1.3135.