• GBP/USD reclaimed two daily moving averages, the confluence of the 20 and 200-day EMAs.
• A daily close of the GBP/USD above the 200-day EMA could open the door for further gains.
• Otherwise, the GBP/USD would be exposed to selling pressure, which might tumble to the 50-day EMA.

The GBP/USD soars above 1.2200, snapping two-consecutive days of losses, and gains 0.48%, as Wall Street finished Thursday’s session in the green. Therefore, the GBP/USD is trading at 1.2215, above its opening price, after hitting a daily low of 1.2084.

GBP/USD Price Analysis: Technical outlook

Thursday’s session witnessed the GBP/USD bouncing off the confluence of the 20 and 200-day Exponential Moving Averages (EMA) around 1.2095/1.2109, late in the New York session. Although a break of the 200-day EMA is supposed to shift the bias of an asset, at least three daily closes would cement the previously mentioned. Also, as long as the GBP/USD stays below last month’s high of 1.2443, the major would be exposed to some selling pressure.

Oscillators like the Relative Strength Index (RSI) remain in bullish territory, poised for further upside, while the Rate of Change (RoC) confirms volatility levels remain depressed.

If the GBP/USD would resume its uptrend, firstly needs to clear the 1.2300 figure. Once done, the next test would be the 1.2400. As an alternate scenario, if the GBP/USD dives below the 20-day EMA at 1.2094, that will put in play the 50-day EMA at 1.1987, but firstly, sellers will need to reclaim 1.2000.

GBP/USD Key Technical Levels