GBPUSD has advanced considerably during yesterday’s trading session, hitting a new one-month high of 1.4087. Over the last few days, the price climbed above the short-term descending trend line from the high on January 25, suggesting more upside bias. The technical picture also supports that the bullish move is likely to continue in the short-term.
It is worth mentioning that the pair has been trading within a strong ascending movement since March 2017 and tested the diagonal line several times in the past.
Looking at the daily timeframe, the RSI indicator has a clear upside direction above the threshold of 50, supporting that the market could keep moving higher. The MACD oscillator confirms this view in the positive territory and is currently moving above its trigger line.
Further gains above the 1.4070 resistance level, could see the February high of 1.4150 acting as the next major obstacle. A run above the latter level would endorse the bullish structure in the short-term and open the way towards the next key resistance of 1.4280.
In the wake of negative pressures, the market could meet support at the 23.6% Fibonacci retracement level near 1.3810 of the upleg from 1.2100 to 1.4345. A successful close below this level could see a retest of the previous low of 1.3710, while in case of steeper declines, the price could breach this level, diving to 1.3660, which holds near the uptrend line.
