Analysis of the GBP/USD exchange rate: the currency pair is unable to break through the important 1.2100 barrier

The GBP/USD pair is aiming to exceed the potential barrier around 1.2106 in order to launch a bullish reversal from the rally. The pound bulls are hovering near the previously announced probable barrier from the Tokyo session's early hours.

The cable saw a significant purchasing response after hitting the two-week-old support of the 14-June low at 1.1970. When an asset's price moves in response to a buyer's bid, this usually indicates that the item is now a value bet. Currently, the likely resistance of Wednesday's low at 1.2106 is a significant hurdle for the pound bulls.

Closing at 1.2090, well above the 20-period Exponential Moving Average (EMA), reinforces the bullish filters in place. At 1.2115, the cable is also getting close to the 50-EMA resistance level. The pound bulls will be reinforced more, though, if they can sustain growth over the same level.

RSI (14) has moved into the 40.00-60.00 range, indicating that a consolidation is about to take place.

With a strong gain above the Monday high of 1.2122, the asset is poised to reach a new high for the week of 1.2188 on Friday. A breach of the latter level will catapult the cable to Tuesday's high of 1.2292.

Alternatively, the dollar bulls may return if the asset falls below Friday's low of 1.1976. A replay of the same occurrence will send the asset towards the round-number support at 1.1900, followed by a bottom of 1.1777 on March 26, 2020.