GBP/USD Price Analysis: Bulls flirt with 100-day SMA ahead of US ADP/FOMC minutes

• GBP/USD gained traction for the second successive day on Wednesday.
• Bulls, however, struggled to make it through the 100-day SMA barrier.
• The technical setup supports prospects for additional near-term gains.

The GBP/USD pair edged higher for the second successive day on Wednesday and maintained its bid tone through the mid-European session. The pair inched back closer to a near two-month high, around the 1.3555-60 region set in the previous day, albeit struggled to make it through the 100-day SMA barrier.

This is closely followed by the 61.8% Fibonacci level of the 1.3834-1.3161 downfall, which should now act as a pivotal point. Given that oscillators on the daily chart are holding comfortably in the positive territory, a sustained strength beyond will be seen as a fresh trigger for bullish traders.

The GBP/USD pair might then aim to surpass the 1.3600 mark and accelerate the momentum towards a downward-sloping trend-line resistance, around the 1.3685 region. The said hurdle extends from July 2021 high, which if cleared decisively would set the stage for an extension of the appreciating move.

On the flip side, the 50% Fibo. level, around the key 1.3500 psychological mark, now seems to protect the downside ahead of the 1.3460-55 region and the weekly low, around the 1.3430 area. Any further slide might attract some buying near the 38.2% Fibo./50-day SMA confluence, around the 1.3400 mark.

Failure to defend the mentioned support levels, leading to a further decline below the 1.3385-75 region might shift the bias back in favour of bearish traders. The pair might then turn vulnerable and accelerate the downfall towards testing the 23.6% Fibo. level support, around the 1.3320 area.

GBP/USD daily chart

Levels to watch