GBPUSD has been in ascending mode after the rebound on the two-month low of 1.2075, challenging the 1.2360 resistance level in the 4-hour chart.
The technical indicators are currently proposing that the buying interest may continue as the 20- and 40-day simple moving averages (SMAs) are following, the price action and posted a bullish crossover in the preceding sessions. The MACD is surpassing the trigger line and is ready to strengthen its momentum, while the RSI seems to be stabilizing in the positive area. In the Ichimoku indicators the red Tenkan-sen line has also sloped upwards.
A closing price above 1.2360, could boost bullish sentiment and confirm additional gains towards the 1.2465 – 1.2483 resistance. Higher still, the 1.2645 obstacle could react as a strong level for the bulls, taken from the peak on April 30.
In the event of a pullback, investors may push the market towards the 20-period SMA around 1.2300 ahead of the 40-period SMA at 1.2246, which stands near the uptrend line. More losses could send the price below the diagonal line, touching the lower surface of the Ichimoku cloud at 1.2200 and the 1.2160 barrier.
In brief, GBPUSD is expected to hold an upward direction in the very short-term, while in the medium-term a jump above 1.2645 could open the door for steeper increases.