GBP/USD technical analysis: Keeps bullish tone and aims for 1.40
|GBPUSD found some footing at the red Tenkan-sen line at 1.3935 after a minor pullback from the 1.3981 level. The pair has been climbing for more than a week now and its positive bearing is being confirmed by the upturn in the 50- and 100-period simple moving averages (SMAs).
The Ichimoku lines are indicating that positive drive is still alive and an achieved bullish crossover of the 100-period SMA at 1.3803 by the 50-period SMA could further boost the ascent. The short-term oscillators are also transmitting signals that bullish impetus could fully return. The MACD, some distance above the zero threshold, has floated back above the red trigger line, while the RSI is regaining its positive bearing and is flirting with the 70 level. Moreover, positive price action sooner rather than later may be further backed by the waning negative charge in the stochastic oscillator.
Drifting higher, preliminary upside limitations could arise between the fresh high of 1.3981 and the 1.4000 handle. Should buying interest persist, an adjacent resistance border of 1.4008-1.4033 could impede additional advances from maturing. However, in the event buyers triumph over these boundaries, the price may then propel to challenge the June 16 high of 1.4132.
Otherwise, if the pair’s hike hits a wall around the 1.3981-1.4000 zone, initial downside friction could occur around the red Tenkan-sen line at 1.3935 ahead of the 1.3897-1.3910 support boundary. If the price weakens below the 1.3900 hurdle, an upside defence zone could transpire between the 1.3861 and 1.3827 barriers. From here, should a deeper retracement evolve beneath the 200-period SMA, the 100- and 50-period SMAs, which are hugging the 1.3800 level, may deny the price from testing the Ichimoku cloud and the 1.3765 trough.
Summarizing, GBPUSD’s recent bullish demeanour should remain intact above the 1.3900 border. Clearing the 1.4033 ceiling could bolster upside momentum, while positive volatility could soften with a price retreat below the 200-period SMA, currently at 1.3843.
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