GBP/USD Gains Some Strong Positive Traction on Tuesday

The Sterling rose against the US Dollar to a 3-day high during the European session and trader are now looking for some subsequent buying that breaks through the psychological level of 1.3000.

With the momentum beyond the resistance level specified at the upper bound of the descending about two weeks ago, the move behind Fibonacci 38.2% from 1.2676-1.3482 could pave the way for additional gains. The RSI indicator is above the 70 mark and the technical indicators are neutral on the chart, yet to confirm the bullish expectations.

Additionally, the US election uncertainty imposes some caution on traders and it would be wise to wait to continue buying again. Overall, consolidation after the 1.3000 mark appears to be able to lift the GBP/USD pair towards 50% Fibonacci. Resistance level, around the 1.3075-80 area, followed by 1.3100 which, if broken, will negate any bearish bias in the near term.

On the other hand, the breakout point for the descending channel’s resistance around 1.2965-60 is protecting the downside before 1.2940.