- GBP / USD continued to advance Tuesday for the second consecutive session.
- The configuration supports the evolution prospects towards the recovery of the 1.2600 brand.
- The immersion purchase should help limit any significant corrective slide to the 1.2500 level.
GBP / USD built on yesterday’s strong intraday positive movement and gained traction for the second consecutive session on Tuesday. The pair maintained its bid tone at the start of the North American session and was last seen near one-month highs, just above the middle of 1.2500.
The overnight upswing helped the pair break through significant resistance near the 1.2450 region, marking the Fibonacci level of 23.6% from the positive move from 1.1412 to 1.2648. This, in turn, may already have reduced the short-term bias in favor of bullish traders amid the widespread USD sales bias.
Meanwhile, the technical indicators on the daily chart have again started to gain positive traction and support the prospects for an extension of the uptrend. Consequently, a return to the recovery of the brand with round figures of 1.2600, en route to the very important 200-day SMA near the 1.2645-50 area, now seems a distinct possibility.
On the other hand, any significant withdrawal could now be considered a buying opportunity. This, in turn, should help limit the decline near the key psychological mark of 1.2500. That said, some follow-up sales could still bring the pair back to 23.6% of Fibo. threshold resistance level, near region 1.2460-50.