GBPUSD has been gradually rising since posting a double bounce near the 1.2615 area, exiting the one-month-old bearish channel recently.
The pair opened above the constraining 20-day simple moving average (SMA) on Tuesday and is currently trying to extend its upleg above the 50-day SMA at 1.2790. This area provided strong resistance earlier this month, while the broken support trendline from October 2022 could add another potential threat within a short distance. Note that the 23.6% Fibonacci retracement of the 1.1800-1.3141 upleg is positioned in the same location at 1.2823. Strikingly, the 50-period SMA in the weekly chart is capping bullish actions for the third consecutive week in the same neighborhood.
Technically, the bulls seem to have more bullish fuel in the tank as the RSI is crossing back above its 50 neutral mark and the MACD is deviating above its red signal line. Yet only a clear close above 1.2823 could motivate a quick rally towards the 1.2940-1.3000 constraining zone. Should buying interest persist, the focus will immediately turn to the 15-month high of 1.3141.
If the pair gets a rejection near 1.2790, pulling back below its 20-day SMA at 1.2750, support could initially develop within the 1.2615-1.2665 territory. Failure to pivot there could generate an aggressive decline towards the 1.2500 round level and the 50% Fibonacci mark of 1.2470. A continuation lower would bring the 200-day SMA at 1.2385 and the lower band of the broken bearish channel on the radar.
Summing up, GBPUSD is showing a bullish attitude in the very short-term picture. Buying confidence could further improve above 1.2823.
