GBP/USD: Upside has a lid

The cable gained some follow-through traction on Tuesday and sit just above mid-1.2900s. Nonetheless, Haresh Menghani from FXStreet sees the pair struggling to break resistance point.

Key quotes

"Any positive move is likely to confront stiff resistance near a short-term ascending trend-line support break-point, around the key 1.30 psychological mark. A convincing breakthrough the mentioned barrier, leading to a subsequent strength above the 1.3020-25 region might trigger a fresh bout of a short-covering move and lift the pair back towards testing 50-day SMA resistance near the 1.3070 region."

"Bearish traders are likely to wait for a sustained weakness below 100-day SMA, around the 1.2895 region, before positioning for any further depreciating move. The pair then might accelerate the slide further towards the 1.2830-25 horizontal support en-route the 1.2800 round-figure mark."