Holds to gains on mixed US data

• GBP/USD remains above 1.3100 with RSI showing buyers in control and targeting 1.3200 resistance.
• Clearing 1.3179 would open the door to challenge the March 2022 high of 1.3298 with a further rise to 1.3437.
• A pullback below 1.3150 could lead to a test of key support at 1.3100 and 1.3044, with the 50-DMA at 1.2914.

GBP/USD is aiming higher in the North American session after United States (US) jobs data was mixed, while business activity expanded. Despite this, the pair is clinging to its gains and is trading at 1.3166 above the opening price by 0.15% at the time of writing.

GBP/USD Price: Technical Insights

GBP/USD remained above the 1.3100 mark but has been capped to the upside so far as traders await the release of August Non-Farm Payrolls on Friday. The Relative Strength Index (RSI) shows that buyers are in charge and could sponsor an advance towards 1.3200.

If GBP/USD pulls back higher and clears 1.3179, a move to 1.3200 will be on the cards. A breach of the latter will expose the March 23, 2022 high at 1.3298 before challenging the March 1, 2022 cycle high at 1.3437.

Conversely, if sellers step in and push GBP/USD below 1.3150, look for a pullback to 1.3100. Despite this, the bears need to break the September 3 low of 1.3087 if they remain hopeful of a lower exchange rate. The next key support levels would be the July 17 high at 1.3044, followed by the 1.3000 figure and the 50-day moving average (DMA) at 1.2914.

GBP/USD Price Action – Daily Chart