GBP/USD Keeps bullish vibe, first upside target emerges above 1.3550
- GBP/USD weakens to near 1.3480 in Wednesday’s early Asian session.
- The positive view of the pair prevails above the key 100-day EMA with the bullish RSI indicator.
- The first upside barrier emerges at 1.3560; the initial support level to watch is 1.3391.
The GBP/USD pair attracts some sellers to around 1.3480 during the Asian trading hours on Wednesday. The Greenback strengthens against the Pound Sterling (GBP) on the economic signs in the United States (US).
Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index rose to 98.0 in May from 86.0 (revised from 85.7). The Minutes of the Federal Open Market Committee (FOMC) will take center stage later on Wednesday.
Technically, the constructive outlook of GBP/USD remains in place as the major pair is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the 14-day Relative Strength Index (RSI), which stands above the midline near 60.00, displaying bullish momentum in the near term.
The upper boundary of the Bollinger Band at 1.3560 acts as an immediate resistance level for the major pair. Extended gains could see a rally to the 1.3590-1.3600 zone, representing the high of May 26 and the psychological level. The additional upside filter to watch is 1.3749, the high of January 13, 2022.
On the flip side, the initial support level for GBP/USD is located at 1.3391, the low of May 22. Sustained trading below the mentioned level could see a drop to 1.3250, the low of May 16. The next downside target to watch is 1.3140, the lower limit of the Bollinger Band.
GBP/USD daily chart
