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GBPUSD Favours Upside; Vicious Appreciation Boosts Bias

GBPUSD recently logged nine consecutive green candles and is quickly approaching the 31½-month high of 1.3624. The price found some footing just beneath the 200-period simple moving average (SMA) and then skyrocketed from there, restoring the bullish tone within the pair. The rising Ichimoku lines and the 50-period SMA are endorsing further gains, while the gradual upwards incline in the 100- and 200-period SMAs is preserving positive sentiment.

Likewise, the short-term oscillators are skewed to the upside. The MACD, in the positive region, is flying above its red trigger line, while the climbing RSI is nearing the 70 mark. Furthermore, the stochastic lines are pushing higher into overbought territory and the %K line has yet to confirm any serious weakness in the up move.

If buying interest continues, early resistance may develop with a revisit to the multi-year top of 1.3624. Conquering this, the commanding bullish bias may jump towards the 1.3665 high from May 2018 before targeting the 1.3711 inside swing low, identified in March 2018. From here, persistent bulls could then turn their focus towards a region of highs between 1.3772 and 1.3792.

On the other hand, if sellers retake the reins, initial support may occur at the 1.3570 inside swing high. Slightly lower, the neighbouring zone of 1.3497-1.3530, which also involves the cloud’s upper surface and the red Tenkan-sen line, could prove a hindrance to downside moves. However, retracing further the price may meet the 1.3451 barrier, reinforced by the 50-period SMA. Should the bears overpower, the price may challenge the 100-period SMA at 1.3410 ahead of the floor of the cloud at 1.3377.

Summarizing, the short-term timeframe remains bullish above the SMAs and the 1.3300 handle. Cable may consolidate if it returns below 1.3497 but could propel higher should it surpass 1.3624.