- GBP / USD looks to extend gains above 1.3200.
- Upward bias intact above 21-HMA.
- Hourly RSI remains bullish ahead of Fed Chairman Powell’s speech.
GBP / USD extends Asian consolidation mode to Thursday’s European session, after rising sharply to 1.3220 in the last US session.
The spot is fluctuating in the upper band of the ascending channel formation carved out this week, as the bulls hold above the 21 hour bullish moving average (HMA), now set at 1.3198.
A test of the upward resistance of the trendline at 1.3238 is likely, supported by the hourly bullish Relative Strength Index (RSI), which now points north at 62.20.
The path of least resistance appears to be on the rise amid a bunch of stacked healthy support levels. The immediate cushion is aligned with the 50-HMA ascending 1.3161 if the 21-HMA gives way.
The next critical support is seen at 1.3147, the convergence of the horizontal 200-HMA and the support of the rising trendline. A break below which the 100-HMA at 1.3135 could be tested.