GBP/USD Price Analysis: Pound bulls are firmer above short-term EMAs, 1.2300 eyed

A swift move above the 20- and 50-EMAs has strengthened the pound bulls.
The cable has attacked the formed inventory distribution, which supports the bullish reversal.
A (60.00-80.00) bullish range shift by the RSI (14) adds to the upside filters.

The GBP/USD pair displayed a firmer rebound after hitting a low of 1.1933 on Wednesday. The asset witnessed a responsive buying action as the market participants found it a value bet and initiates significant longs, which drove it higher swiftly. The pound bulls have attacked the round-level barricade of 1.2200 and are expected to overstep the same for further upside.

The formation of a buying tail near the lowest prices dictates a firmer responsive buying, which states that the greenback bulls’ party is over now. An upside drive in cable has challenged the former inventory distribution, which placed in a narrow range of 1.2107-1.2208. A vertical upside move into the former balancing area strengthens a bullish reversal.

The pound bulls are auctioning above the 20- and 50-period Exponential Moving Averages (EMAs) at 1.2103 and 1.2113 respectively, which signals a short-term bullish trend.

Also, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which adds to the upside filters.

A minor pullback towards the 20-EMA at 1.2103 will be a bargain buy for the market participants, which will drive the asset towards Wednesday’s high at 1.2205. A breach of the latter will unleash the pound bulls for a quick upside move towards the round-level resistance at 1.2300.

On the flip side, the greenback bulls could regain strength if the asset drops below the psychological support of 1.2000. This will drag the asset towards Tuesday’s low at 1.1934, followed by the 26 March 2020 opening price at 1.1879.