GBPUSD is consolidating into the Ichimoku cloud after its recent retreat from the newly formed 32-month peak.
The bias still seems to be favouring the upside although positive momentum is looking somewhat strained. Furthermore, the commanding bullish simple moving averages (SMAs) are preserving the positive structure in spite of the minor stalling in the 50-period SMA.
The short-term technical oscillators are transmitting signals of growing sentiment, promoting an optimistic outcome. The MACD is marginally below its red trigger line flirting around the zero mark, while the RSI is trying to sustain its push over the 50 threshold. However, the stochastic oscillator is exhibiting a strong positive charge, suggesting strength in the pair.
If buying interest intensifies, initial resistance could be found at the nearby 1.3633 high. Gaining extra ground the pair may then target the 1.3670 barrier. Should the bulls’ confidence grow, they could aim for the resistance ceiling of 1.3703-1.3711, which includes the fresh multi-year peak. Breaching this too, the price may catapult towards the 1.3772-1.3792 limiting boundary, from the end of April 2018.
On the other hand, with a dip under the 50-period SMA at 1.3579, the price may see next downside constraints develop around the support base of 1.3532-1.3547. A loose foothold from here could hit the 100-period SMA at 1.3520, while extra selling pressure may dive the pair towards the 1.3467 low. Further declines may then be challenged by the 200-period SMA at 1.3438 and the adjacent trough of 1.3428.
In conclusion, GBPUSD’s short-term bullish bias remains sturdy above the SMAs and the 1.3428 trough. If the price persists above the 1.3532-1.3547 zone, positive price action may revisit the 1.3703 top.