GBPUSD Tests Upper Boundary of Trading Range

Technical analysis of Forex market

GBPUSD is moving higher over the last 4-hour session remaining well above the short-term simple moving averages (SMAs). The RSI indicator is pointing up near the 70 level, while the MACD oscillator is holding above its trigger line in the positive region.

If the market overcomes the 1.3637 resistance level, the next stop could come from the 1.3660 resistance level. Surpassing the aforementioned levels, the bulls may visit the 1.3690 hurdle ahead of the 1.3750 barrier, registered in January 13.

On the other hand, a drop lower could take the bears until the immediate 20-period SMA at 1.3576 before tumbling to the 40- and the 200-period SMAs near the 1.3555 support level. Underneath these obstacles the market could make a pause at the 1.3494 mark.

In conclusion, GBPUSD has been in neutral phase in the short-term with upper boundary the 1.3637 resistance and lower boundary the 1.3494 support. Only a move above or below these levels may change this outlook.