GBPUSD CONTINUES TO TEST UPSIDE RESISTANCE AT 1.2940

The GBPUSD pair continues to trade at elevated levels above the 1.2900 level towards 1.2927, but has so far failed to break above resistance in early Tuesday trading.

Yesterday the pair tested the 1.2940 level, moving to a ten day trading high, but crucially failed to break above strong technical resistance, provoking selling back towards 1.2894, only for the pair to then meet further sterling dip buying demand.

Technically the pair is bullish whilst trading above the monthly pivot point at 1.2897, and the former weekly trading high at 1.2915

Buying momentum is currently building for another attempt at the 1.2940 resistance level. A breach of this area likely to provoke further buying towards 1.2965 and 1.2990 resistance today.

A failure to break above the 1.2940 level should see short term sellers move in, with technical selling likely to occur towards the 1.2897-1.2915 cluster support zone. A further loss of the 1.2894 current daily low should provoke selling towards the Monday spike low at 1.2848.