04.06.2020 GBP/USD Daily Analysis

04.06.2020 GBP/USD Daily Analysis

The pair is pulling back from current highs after it failed to settle above 1.2600 The US dollar is finally recovering against a broad basket of currencies and the US Dollar index has to settle closer to 97.5 after touching a low of 97.19 In case GBP/USD moves below 1.2500, it will head towards the next support level at the 50 EMA at 1.2380. It’s important to note that the 20 EMA is about to cross the 50 EMA to the upside, suggesting there will likely be a continuity of the upward trend. On a brighter note, GBP/USD will have to deal with the major resistance at 1.2650. If GBP/USD gets above this resistance level, it will gain upside momentum and head towards the next resistance level at 1.2750. On a more broad view, GBP/USD is in a range between 1.2250 and 1.2650. GBP/USD will probably require significant catalysts to move out of this range.