GBP/USD edges lower from monthly highs at 1.3288.
The pair has formed a 'Bullish Engulfing' candlestick pattern on the daily charts raising scope for upside.
Price action has retraced a brief dip below 200-DMA which is strong support at 1.2988.
RSI is above 50, bias higher. Momentum studies are bullish . MACD is on verge of bullish crossover on signal line.
RSI and Stochs are nicely converging with price action. We see scope for gains till 1.3350.
Strong resistance lies at 55-W EMA at 1.3258. Close above will see upside continuation.
Immediate support lies at 5-DMA at 1.3127. Break below 200-DMA negates bullish bias.
Support levels - 1.3127 (5-DMA), 1.31, 1.3088 ( 20-DMA )
Resistance levels - 1.3258 (55-W EMA ), 1.33, 1.3350 (Feb 27 high)
Good to go long on dips, SL: 1.2980, TP: 1.33/ 1.3350
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