GBPUSD is edging sharply higher since last Wednesday, adding around 1% relative to Tuesday’s close and being well on track to post its fourth green day in a row. The price is still trading comfortably above the ascending trend line, which is roughly holding since March and is currently approaching the next immediate resistance level at 1.3550. The current risk is to the upside and the price could extend its gains to the 1.3655 barrier.
On the downside, support could come around 1.33, this being an area of congestion recently as well as one encapsulating a bottom and a couple of peaks from the recent past. Further below and looking at the bigger picture, if the pair slips below the rising trend line, this could eventually open the way for the 1.3060 support level.
In the daily time frame, trend and momentum indicators are in bullish territory, although the MACD oscillator is looking increasingly neutral. The RSI indicator has turned higher and is moving towards the 70 level. The three simple moving averages (50, 100 and 200) are bullishly aligned.
Having a brief look at the weekly time frame, cable is on the path to post the second consecutive bullish week and the RSI indicator is endorsing the case for further upside movement.
