GBP/USD Bulls Eye 1.3500 as Buyers Defend 200-Hour SMA

The GBP/USD pair has maintained its positive momentum for the second consecutive day, with modest intraday gains throughout the European session. The optimism surrounding a potential diplomatic resolution to the Middle East conflict and the reopening of the Strait of Hormuz have led to a decline in crude oil prices, easing inflation fears.

This, in turn, has undermined the safe-haven US Dollar (USD), benefiting the GBP/USD pair. However, investors remain cautious, opting to wait for further developments surrounding the US-Iran conflict and the upcoming Nonfarm Payrolls report on Friday.

From a technical perspective, spot prices continue to trade above the 200-hour Simple Moving Average (SMA), indicating steady bullish pressure. The Relative Strength Index (RSI) is near 55, and the Moving Average Convergence Divergence (MACD) is marginally positive, suggesting a constructive tone.

Bulls may look to the weekly top at 1.3500 as a reference point for potential resistance if the GBP/USD pair extends its advance. On the other hand, any corrective pullback is likely to attract fresh buyers near the 1.3400 mark, limiting the downside near the 200-period SMA pivotal support around 1.3379.