GBP/USD Price Analysis: Eyes a break above 1.3643 amid bullish technical setup

• Bulls are hopeful above 1.3643 for the further upside.
• The 50-EMA and 200-EMA have delivered a bullish crossover but other factors need to get in place.
• The momentum indicator, RSI (14) is holding above 60.00 and indicating that a rally is near.

The GBP/USD pair is hovering near Thursday’s last traded price at 1.3614 and is likely to remain quiet until it pierces February’s high at 1.3643 decisively. On the four-hour scale, the cable is wandering back and forth in a range of 1.3490-1.3643, right from the first trading session of February.

Considering the broader picture, GBP/USD is grinding higher after sensing support at 61.8% Fibonacci retracement level near 1.3385, which states that bulls now have taken control and may guide the asset further. The Fibonacci retracement has been placed from the three-month low of 1.3161 to January’s high at 1.3749. 

The 50-period Exponential Moving Average (EMA) is scaling above the 200-EMA, which signals a bullish crossover but the context needs to be supported by other indicators as well. The Relative Strength Index (RSI) (14) has crossed 60.00, which is likely to keep cable in the grip of bulls.

Before cable gets exposed to higher levels, it needs to breach 1.3643 decisively. This may push GBP/USD towards the January 17 high of 1.3690., followed by the 2022’s high of 1.3750

On the flip side, bears may take control, if the cable slips below Tuesday’s low at 1.3485, opening floors towards the next support levels at 1.3455 and 1.3387.

GBP/USD four-hour chart