GBPUSD has turned more bullish in the short term after rising to a two-month high of 1.4518 on Monday and is currently consolidating gains at this level. This area is the upper end of the range the pair has been trading in since early March. Prices moved above the daily Ichimoku cloud a week ago and the tenkan-sen line has crossed above the kijun-sen line, giving a bullish signal.
Other technical indicators have turned bullish also, such as the RSI which is above 50 and trending up, while the MACD has just crossed above zero.
The medium term bias remains neutral, between the range low of 1.3834 and the range high of 1.4667. If upside momentum continues, there is scope to target 1.4667. A move above this high would target the 50% Fibonacci level at 1.4825, which is the retracement of the downleg from 1.5818 to 1.3834 (August 2015 to February 2016 low). A move above the 50% Fibonacci would significantly shift the long term bearish bias the pair has been in since August 2015. However, the market would need to remain above 1.4400 (important support) to maintain the current upside momentum.
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