GBPUSD’s positive response appears to be strengthening as the pair is stepping higher from the minor pullback towards the Ichimoku cloud. The bounce on November 2 off the 100-day simple moving average (SMA) brightened the bias as it drove the price over the cloud, keeping bullish hopes alive. The rising red Tenkan-sen line conveys increasing momentum, while the MACD and the stochastic oscillator reflect a rise in sentiment.
The MACD, in the positive area, is developing above its red trigger line while the stochastic %K line is in the process of positively overlapping the %D line, thus endorsing positive gains. Moreover, the RSI in the bullish region is beginning to head north. However, while the rather flattened 50- and 200-day SMAs are promoting a somewhat neutral picture, the 100-day SMA is backing further advances in the pair.
A newfound upside drive may encounter initial constraints from the 1.3318 border, which if surpassed could lead the pair towards a resistance ceiling that involves the multi month peaks of 1.3481 and 1.3514 respectively. Conquering these heavy obstacles may boost the bullish outlook, catapulting the pair towards the 1.3617 high from May 2018, ahead of the March 2018 barrier of 1.3710.
Otherwise, steering downwards may see early support arise from the Ichimoku lines, residing at the 1.3105 low and the neighbouring cloud’s ceiling at 1.3085. Slipping into the cloud, the 50- and 100-day SMAs, currently around 1.2972, could impede the dive in price from reaching the 1.2854 trough. Sinking deeper, the 200-day SMA at 1.2705 and the adjacent support section of 1.2643-1.2686, may attempt to dismiss further declines from unfolding.
Summarizing, the neutral-to-bullish bias maintains an upbeat bearing. A break above 1.3514 may boost the positive outlook, while a dip beneath the 200-day SMA may trigger negative worries.
