The GBP/USD Pair Consolidates Its Recent Gains to the Highest Level

GBP/USD

The GBP/USD pair consolidates its recent gains to the highest level since June and oscillates in a range, below the 1.2300 mark through the first half of the European session on Friday. The technical bias, meanwhile, remains tilted in favor of bulls and supports prospects for a further near-term appreciating move.

The overnight sustained strength and acceptance above a technically significant 200-day SMA for the first time in 2022 could be seen as a fresh trigger for bullish traders. Furthermore, the recent move up since late September has been along an ascending channel, which further points to a well-established short-term positive trend.

Moreover, oscillators on the daily chart are holding comfortably in the positive territory and are still far from being in the overbought zone. The GBP/USD pair, however, remains capped near the trend-channel resistance as traders prefer to move to the sidelines ahead of the release of the closely-watched US monthly jobs report (FMP).

Hence, it will be prudent to wait for a sustained strength beyond the top end of the aforementioned channel before placing fresh bullish bets. The said barrier is currently pegged near the 1.2310 regions, above which the GBP/USD pair could climb to the 1.2345-1.2350 intermediate resistance and eventually aim to reclaim the 1.2400 round-figure mark.

On the flip side, the corrective pullback might now find decent support near the 1.2200 mark. Any further downfall could be seen as a buying opportunity and remain limited near the 1.2150 regions (200-DMA). The latter should act as a pivotal point for short-term traders, which if broken decisively will negate the near-term positive outlook for the GBP/USD pair.

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