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GBPUSD makes new bullish plans within channel

ByXM Group
AuthorTrading Point
Published 05/11/2021, 07:42 AM
Updated 02/07/2024, 09:30 AM

GBPUSD extended Friday’s bullish run to a 2½-month high of 1.4157 on Monday but finished the day slightly lower around the closing price from the end of February at 1.4135, which has also been a hurdle during 2018.
The RSI has yet to reach the overbought territory and the MACD continues to gain momentum above its red signal line and within the positive area. Therefore, the bulls may not easily walk away in the short term.
Above the 1.4235 barrier, the 1.4240 – 1.4350 region could be another trouble, a break of which is likely required for an exciting ascent towards the top line of the bullish channel seen around 1.4630 and closer to the 2015 – 2016 restrictive zone. Higher, the next target could be the 1.4950 bar.
Should the bears take over, the shorter-term simple moving averages (SMAs) and the channel’s bottom line could settle a safety-net within the 1.3910 – 1.3850 zone, deterring any moves towards the previous lows around 1.3670. In the case the latter fails to hold, weakening the confidence in the one-year-old uptrend, the door would open for the 200-day SMA at 1.3450, while deeper, sellers may face another challenge inside the 1.3310 – 1.3200 border.
Summarizing, GBPUSD bulls are expected to persist in the short-term as the technical bias continues to flash green. That said, some caution is warranted as the pair is approaching overbought waters and key barriers are lying ahead.

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