Technical Analysis – GBPUSD climb remains intact amid lingering bullish forces

GBPUSD has staged a spectacular uptrend movement from late December amid strengthening positive momentum. Moreover, the pair’s successive higher highs together with the recent golden cross, where the 50-period simple moving average (SMA) has crossed above the 200-period SMA, reinforce the case for a sustained bullish outlook.

Short-term momentum indicators reflect a mixed picture as the RSI is found above its 50 neutral mark. However, despite being above zero, the MACD is located below its red signal line, indicating that the positive momentum might be fading.

Should the bears reassert control, initial resistance might be found at the 1.3748 level. Crossing above the latter could reinforce the pair's positive momentum, opening the door towards the October high at 1.3834, before buyers shift their attention towards the early-September high at 1.3891.

On the flip side, the first major support could be found at the late-December uptrend line before sellers eye the 50-period SMA currently at 1.3597. A break below that level could turn the fortunes around for the pair, pressuring its price towards the 1.3549 hurdle before moving towards the 1.3430 obstacle. Crossing below the latter could open the door towards the 200-period SMA currently at 1.3386.

In brief, the overall outlook for the pair is bullish amid successive higher lows and higher highs. For sentiment to change, sellers would need to drive the price below the 50-period SMA.

Latest News

Technical Analysis – EURJPY bearish as it dips beneath 200-MA

Technical Analysis – USDCHF shows negative signs in the short-term

Technical Analysis – GBPJPY moves sideways after its December rally

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.