Technical Analysis – GBPUSD under bullish control but confirmation required
GBPUSD closed marginally above its 50-day simple moving average (SMA) on Monday at 1.2244 for the first time since February, violating at the same time the upper surface of a bearish channel.
Despite today’s stabilization, there are still hopes for further progress given the upward trend in the RSI, which is currently hovering clearly above its 50 neutral mark, as well as the strength in the MACD, which has climbed into the positive region.
That said, traders may wait for additional winning sessions, and particularly a durable move above the nearby resistance area of 1.2312 – 1.2400, before they target May’s top of 1.2665. If the bulls successfully claim the latter, officially signaling a trend reversal, the price could pick up steam towards the 1.2843 minor barrier, which was more active during the 2019 – 2020 period. Higher, the pair will seek another advance above the key 200-day SMA at 1.2960.
In the case the price pulls back into the bearish channel, the 1.2060 – 1.2000 region may attempt to prevent a freefall towards the 28-month low of 1.1758. Failure to change direction here could press the price towards the channel’s bottom line currently seen at 1.1640, while even lower, all attention will turn to the pandemic trough of 1.1408.
In summary, GBPUSD is still surrounded by positive vibes following its latest bullish breakout. Buyers will next look for a close above the 1.2312 – 1.2400 zone before they raise exposure in the market.
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