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Technical Analysis – GBP/USD unlocks 2-month peak

GBP/USD 15Jan19 | EconAlerts

GBP/USD unlocks 2-month peak; turns the short-term bias to bullish

GBP/USD is hovering around the two-month high of 1.2930 after it posted two consecutive green days, having broken above the 40-day simple moving average (SMA) and the descending trend line. This week the pair continues to attract buying interest, with the price climbing slightly above the 23.6% Fibonacci retracement level of the down-leg from 1.4375 to 1.2390, around 1.2855.

The technical indicators are still positive in the short-term, with the MACD stretching further above its red trigger line and the RSI moving above the 50 level with strong momentum. Furthermore, the 20- and 40-SMAs are ready to record a bullish crossover in the daily timeframe.

If investors turn their eyes even higher, the pair could re-challenge the 1.3065 resistance, marked by the high on November 14. If bullish actions appear stronger, the market could find resistance at the 1.3145 barrier, which is the 38.2% Fibonacci region before touching the 1.3170 level.

On the flipside, if cable slips back beneath the 23.6% Fibonacci and the 1.2815 support, this could open the door towards the 1.2710 support, which overlaps with the moving averages in the short-term. Moving lower, a violation of these levels would increase negative movement, hitting the 1.2475 support, registered on December 11.

Concluding, the near-risks look to be turning positive after the break above the diagonal line, however, in the long-term, the outlook would shift to bullish if the price action surpasses the 61.8% Fibonacci near 1.3600.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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