Technical Analysis – GBPUSD edges higher; creates 1-month high below 1.4100
|GBPUSD has advanced considerably during yesterday’s trading session, hitting a new one-month high of 1.4087. Over the last few days, the price climbed above the short-term descending trend line from the high on January 25, suggesting more upside bias. The technical picture also supports that the bullish move is likely to continue in the short-term.
It is worth mentioning that the pair has been trading within a strong ascending movement since March 2017 and tested the diagonal line several times in the past.
Looking at the daily timeframe, the RSI indicator has a clear upside direction above the threshold of 50, supporting that the market could keep moving higher. The MACD oscillator confirms this view in the positive territory and is currently moving above its trigger line.
Further gains above the 1.4070 resistance level, could see the February high of 1.4150 acting as the next major obstacle. A run above the latter level would endorse the bullish structure in the short-term and open the way towards the next key resistance of 1.4280.
In the wake of negative pressures, the market could meet support at the 23.6% Fibonacci retracement level near 1.3810 of the upleg from 1.2100 to 1.4345. A successful close below this level could see a retest of the previous low of 1.3710, while in case of steeper declines, the price could breach this level, diving to 1.3660, which holds near the uptrend line.
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.