GBPUSD Reaches New 35-Month High

GBPUSD created a new 35-month high of 1.4238, remaining well above the long-term rising trend line. The MACD is flirting with the trigger line for a potential downside retracement in the positive region, while the RSI is turning slightly up above the 50 levels. The 20- and 40-day simple moving averages (SMAs) posted a bullish crossover and the 200-day SMA is keeping the upside move.

Steeper increases could take the bulls until the 1.4345 resistance, registered in January 2018. Stretching above this crucial line, the price could visit the 1.4745 barriers, being the top in May 2016. On the other side, if the bears take the market below the 20-day SMA, the 1.4000 handles around the ascending line could halt the bearish move. A successful drop below the diagonal line could shift the bullish outlook to bearish, testing the 1.3670 support and the 23.6% Fibonacci retracement level of the up leg from 1.1405 to 1.4238 at 1.3577, which overlaps with the 200-day SMA.

In conclusion, GBPUSD has been in an ascending tendency since March 2020, while a dive below the uptrend line and the 200-day SMA may switch the current outlook to negative.

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