Technical Analysis – GBPUSD is smooth below 1.4000; neutral bias

GBPUSD has been developing within a horizontal trajectory over the last two months, surpassing the 20- and 40-day simple moving averages (SMAs), which are ready to create a bullish crossover. The MACD oscillator is endorsing the sideways move, holding in the positive region, while the MACD is pointing up above the 50 level.

Immediate resistance could be faced at the 1.4000 psychological level, which is acting as a significant barrier in the short-term. Stretching above this crucial line, the bulls may revisit the 35-month high of 1.4235.

On the other side, if the bears take the market below the uptrend line could meet the 1.3670 support before meeting the 23.6% Fibonacci retracement level of the up leg from 1.1405 to 1.4235 at 1.3570. Even lower, the 200-day SMA could act as a support line at 1.3435, shifting the market to bearish.

In conclusion, GBPUSD is neutral at the short-term, however, in the bigger picture, the price has been in an ascending tendency since March 20.  

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