Technical Analysis – GBPUSD bullish; eyes 10-month high
|GBPUSD closed higher in the preceding three out of four trading days. During Friday’s trading, it advanced by a hefty 1.3%, reaching a ten-month high of 1.3113 along the way.
Technical indicators including the MACD and RSI are painting a bullish picture for the pair. In particular, the MACD is positive as well as above the red signal line. The RSI indicator is in bullish territory at 64 and keeps heading higher, indicating the existence of positive momentum in the near-term.
Should the price edge higher, the area around Friday’s high of 1.3113 could pose a barrier to further advances. Notice that the price is currently close to this level. A successful break above would divert attention to the area around 1.32, a potential psychological mark that might act as resistance.
If the price declines, the area around the 1.30 handle, which was of significance in the recent past, could provide support. Should it be violated, the area around the current level of the 50-day moving average (MA) at 1.2880 would be eyed next.
Regarding the medium-term picture, the pair has been in an overall uptrend since the start of the year. This supports the positive medium-term signal given by the bullish cross that was formed during May when the 50-day MA moved above the 200-day one. Additional supportive evidence for the bullish outlook comes from the price recently crossing above both the 50- and 200-day MAs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.