GBPUSD has been edging sideways in the Ichimoku cloud for the last week, after retreating from the recent five-month high of 1.3185, just shy of the key 1.3200 peak from March 9. The Ichimoku lines and the flattened 50-period simple moving average (SMA) reflect this horizontal tone within the pair.
Nonetheless, the SMAs continue to convey a prevailing positive orientation, while the short-term oscillators exhibit efforts to improve positive momentum. The MACD and its red trigger are pointing upwards slightly below the zero mark, while the RSI is attempting to push higher into the bullish section. Moreover, the stochastic %K line has bounced off the 20 level, completing a bullish crossover of the %D line, endorsing advances.
If buying interest picks up, immediate constraints may develop from the 50-period SMA at 1.3083, located at the cloud’s upper surface, prior to the nearby 1.3131 high. Overtaking this, the critical section from 1.3185 to 1.3211 may provide heavy resistance, which may prevent the pair from gaining further ground. If this border fails to do so, the year-end peak of 1.3283 and the 1.3305 inside swing low from December 2019, may curb the climb.
If sellers take control, and steer under the lower band of the cloud around 1.3047, the 1.2980 to 1.3004 zone – which includes the 100-period SMA – may provide significant support to challenge the decline. Dipping beneath this foundation, the pair may encounter some friction from the 1.2943 low before resting at the 1.2900-1.2911 area. Sharper deterioration in price may then meet the 1.2837 barrier ahead of the 200-period SMA near the 1.2772 support.
Overall, GBPUSD appears to be taking a breather confined between 1.2980 and 1.3185. A break either below or above these boundaries could reveal the next clear direction.