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.