GBP/USD while directionless is attempting a new push towards the five-month high of 1.3011, which is aided by the recent bullish crossover of the 200-day simple moving average (SMA) by the 50-day one and the rising slopes of the 50- and 100-day SMAs.

The technical indicators suggest that positive momentum is improving. The RSI is rising in bullish territory, while the MACD – although still in the positive zone – is below its red trigger line but looks to move back above it. Noteworthy though, is the flat 20-day SMA and the Ichimoku lines, which warn of a pullback or a persisting sideways move.

If buyers persist, initial resistance could come from the peak of 1.3011 and neighboring 1.3045 level, which is the 76.4% Fibonacci retracement of the down leg from 1.3381 to 1.1957. A successful break above this may see the 1.3176 high from May 3 bare its claws ahead of the highs from March at 1.3268 and 1.3310.

If sellers retake control, the 1.2879 area and the 61.8% Fibo of 1.2837 underneath, maybe first to halt the decline. Next, the low of 1.2768 and nearby 50-day SMA at 1.2745 – residing at the upper band of the cloud – could interrupt the drop. Slightly lower, the 200-day SMA at 1.2689 and 50.0% Fibo of 1.2668 maybe next to challenge the bears ahead of the 1.2581 inside swing from September 20.

Overall, the short-term bias is neutral-to-positive and a break above 1.3011 would reinforce the bullish outlook.


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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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