GBP/USD Price Forecast: Aims to recapture three-week high near 1.2100

• The upward-sloping trendline from 1.1760 has acted as a major cushion for the asset.
• Pound bulls have comfortable defended the 200-EMA at 1.1990.
• A decisive break of 60.00 by the RSI (14) will trigger the upside momentum.

The GBP/USD pair is auctioning in a tight range of 1.2016-1.2042 from the late New York session as investors’ focus has shifted to the interest rate decision by the Federal Reserve (Fed). The cable has turned sideways after a responsive buying action to near Monday’s low at 1.1960. A responsive buying action indicates upbeat liquidity channelization after the market participants find the asset a value bet.

The cable is firmly marching towards the three-week high at around 1.2100 after sensing an offers absorbing structure around the upward-sloping trendline plotted from July 14 low at 1.1760.

Also, the pound bulls have comfortably defended the 200-period Exponential Moving Average (EMA) at 1.1990, which signals the strength of the asset. Meanwhile, the cable has reclaimed the 50-EMA at 1.2025, which signals that the short-term term is positive now.

The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which seeks a potential trigger. A decisive break of 60.00 will trigger the upside momentum.

An upside break of Tuesday’s average price at 1.2054 will drive the asset to a three-month high at around 1.2100. A breach of the latter will expand the upside potential of the cable to July 4 high at 1.2165.

On the flip side, the greenback bulls may make a comeback if the asset drops below Monday’s low at 1.1960. An occurrence of the same will drag the asset towards Friday’s low at 1.1916 followed by July 13 low at 1.1828.

GBP/USD hourly chart