GBP/USD Price Analysis: Key upside levels are being tested

• GBP/USD trades 0.65% higher on the session as greenback weakness kicks in across the board.
• The price is testing a key level near 1.2734 and has printed above but we will need to wait for the daily close.

GBP/USD daily chart

GBP/USD has had a great session but its as much about USD weakness as it is about GBP strength. The positive risk environment also seems to help the pound and on Tuesday the major bourses are trading in the black too. All of the GBP strength comes in the backdrop of Brexit negotiations, poor government performance when dealing with the coronavirus outbreak and the BoE talking about negative rates.

Looking closer at the price action now and the pair has printed above the blue resistance of 1.2750. A daily close above the level could be a positive sign. Elsewhere, the price has also broken above the purple trendline but it only has two previous touches so it cannot be considered the strongest trendline. The next important level on the way up is the red wave high at 1.2813. If the level is broken it would be yet another bullish sign and the price could head to 1.30. 

Looking at the indicators, the Relative Strength Index is looking bullish and seems to be heading to the overbought zone. The MACD is also looking positive as the histogram is green and the signal lines are firmly above the mid-point. 

Additional levels