Sterling Traders Eying 1.2600

During the North American session, the British Pound registered modest gains versus the US Dollar. The Bank of England (BoE) will decide on monetary policy in a week.

An upbeat market sentiment underpins the GBP/USD’s higher trading at around 1.2579, above a key support level. The GBP/USD is neutral to upward biased in the near term after breaching the 200-day moving average (DMA) at 1.2547.

From a momentum standpoint, the Relative Strength Index (RSI) shifted bullishly, which could open the door for challenging the 1.2600 mark, slightly below the 50-DMA at 1.2609.

A breach of the latter will expose the confluence of the May 3 high and the 100-DMA at around 1.2634/42 before edging toward 1.2700.

On the other hand, if the GBP/USD retreats below the 200-DMA, sellers could regain control. The first support would be the 1.2500 figure, followed by the May 1 low of 1.2466. Once cleared, the next stop would be 1.2400, followed by the April 22 low of 1.2299.