- GBPUSD picks up steam, heads towards important resistance
- Technical signals improve, but market structure is still neutral
GBPUSD has been trading with stronger positive momentum over the past couple of hours, aiming to reach July’s resistance trendline, which capped Wednesday’s pickup at 1.2773.
The upside reversal in the RSI and the upturn in the stochastic oscillator are endorsing the bullish action in the price, though the ongoing sideways move, which started in mid-December, is showing no cracks at the moment.
A decisive close above the constraining falling line at 1.2770 could generate additional gains, but only an advance above December’s peak of 1.2826 would put the market back in an uptrend. In this case, the pair may print a new higher high within the 1.2870-1.2900 region or stretch towards the 1.2950 zone to test the ascending line which connects the highs from November and December.
If the bears resurface, the pair could pull lower to meet the support trendline from the January 17 low at 1.2680. A defeat for the bulls there could bring the 1.2600-1.2630 region under examination. Breaking that floor could see a fast decline towards the 1.2545 constraining zone.
In brief, GBPUSD is facing upside pressures within a neutral structure. A continuation above 1.2770 would create some extra optimism, whereas a drop below 1.2600 would downgrade the outlook.
