GBPUSD: Positive Bias Holds as Momentum Indicators Tilted to the Upside

GBPUSD: Positive Bias Holds as Momentum Indicators Tilted to the Upside

GBPUSD has recently reached a four-month peak of 1.2826, signaling a positive bias. The pair has been forming a profound structure of higher highs since breaking above a crucial descending trendline in early November. This rally may be short-lived, but the impending completion of a golden cross between the 50- and 200-day simple moving averages (SMAs) suggests potential upside pressure.

RSI and MACD Indicators Support Bullish Sentiment

Both the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) indicators are currently within their positive territories, indicating that the bulls may attempt to erase the latest weakness and overcome the recent resistance of 1.2793. If successful, this breakthrough could open the door for a continuation towards the four-month peak of 1.2826. Further upward momentum could lead to a test of the June high at 1.2847.

Support Levels in Case of a Reversal

In the event that the pair reverses lower, there are several previous resistance levels that may now act as initial lines of defense. These include 1.2732 and 1.2678. If these levels are breached, the price may then descend towards the recent support of 1.2611. Should the downside correction continue, the December bottom of 1.2500 could provide further support.

While GBPUSD’s advance may be losing steam, the near-term risks remain clearly tilted to the upside. The completion of a golden cross between the 50- and 200-day SMAs, combined with positive RSI and MACD indicators, suggests potential for further upward movement. However, for a change in sentiment, the pair would need to decisively break below its upward sloping channel. Traders should continue to monitor key levels of support and resistance for potential trading opportunities.

Technical Analysis

Articles You May Like

Analysis and Outlook of Gold Price Fluctuations Amid Economic Data
The Current State of the Crude Oil Market: Analysis and Projections
The Impact of CPI Figures on Bitcoin Price
The Bullish Trends Driving Gold Prices in 2024

Leave a Reply

Your email address will not be published. Required fields are marked *