GBP/USD Analysis: Resistance at 1.2700-1.2710 Zone

GBP/USD is trading slightly lower around 1.2685 due to a stronger US Dollar. However, the pair maintains a bullish stance above the important 100-period Exponential Moving Average (EMA). Key resistance is identified around the 1.2700–1.2710 zone, while initial support lies at 1.2650. The pair’s recent upward trend might face a challenge as the US Dollar strengthens.

Looking at technical indicators, GBP/USD remains bullish, with the RSI above the 50 midline on the four-hour chart, indicating a preference for upward movement.

The resistance zone at 1.2700-1.2710 presents a significant hurdle, marked by the upper Bollinger Band boundary, a psychological round figure, and a previous high from March 4. Breaking above this level could lead to further gains, with potential targets at 1.2750 and 1.2785.

Conversely, initial support lies at the 100-period EMA around 1.2650, followed by the lower Bollinger Band boundary at 1.2612. Further downside targets include lows from February 20 at 1.2580 and December 11 at 1.2535.

Traders are closely monitoring February’s labor market report, which could influence GBP/USD’s direction in the near term.

GBP/USD four-hour chart

GBP/USD