GBP/USD Price Analysis: Eyes the yearly high ahead of UK Retail Sales, PMIs

• GBP/USD extends the previous day’s gains from 21-day SMA.
• Late-December 2019 top grabs the bulls’ attention, sellers will have a bumpy road even after breaking 21-day SMA.
• UK Retail Sales may stabilize around 2.0% June’s volatile performance, PMIs signal upbeat outcome.

GBP/USD remains mildly bid despite recently easing from 1.3234 to 1.3225 during the early Friday. The Cable dropped to one-week low amid the initial downside on Thursday before bouncing off 21-day SMA.

Given the pair’s refrain from respecting the bears below 21-day SMA, coupled with nearness to the monthly and yearly top, buyers remain hopeful to cross 1.3267 resistance before attacking December 31, 2019 peak surrounding 1.3285.

Should the traders keep ignoring overbought RSI conditions beyond 1.3285, 1.3300 may challenge them ahead of diverting to December 2019 high of 1.3515.

Alternatively, a downside break of 21-day SMA, currently around 1.3070 will have to slip below the 1.3000 threshold and the current month’s low of 1.2981 to target June month’s high of 1.2813.

However, bears can only rest assured if they manage to dominate below 1.2725/15 area comprising 200-day SMA and 61.8% Fibonacci retracement of December 2019 to March 2020 fall.

GBP/USD daily chart

Trend: Bullish