GBP/USD Price Analysis: Pound struggling with resistance at 1.2680

• Sterling's rally peaks at 1.2725 and the pair pulls bach to 1.2660 area.
• The pair remains capped below the 200-day moving average, at 1.2680.
• Above 1.2680, next resistance levels might be at 1.2725 and 1.2850.

The sterling has rallied against the dollar for the seventh consecutive day, extending its uptrend from 1.2260 area to levels past 1.2700 for the first time since mid-March.  The pair, however, has failed to confirm above the 200-day SMA, which capped the GBP/USD upside attempts in April, now around 1.2680.

The GBP is moving now at 1.2665 area after pulling back from 1.2725 high. On the upside, the sterling should close the daily candle above the mentioned 200-day SMA at 1.2680 to extend towards February 28 low at 1.2725 and February 20 low at 1.2850.

On the downside, the pair might find support at the previous double top around 1.2645. A clear break below here might strengthen bearish momentum and drive the pair towards the 100 SMA at 1.2550 and then Jun 4 low at 1.2500.

GBP/USD daily chart

GBP/USD key levels to watch