GBPUSD found strong support along the upper line of an upward-sloping channel and accelerated above a five-year old descending trendline, avoiding the confirmation of any bearish trend pattern.
The price is currently trying to claim the 1.3400 area and crawl towards the 2019 peak of 1.3515, which is a possible scenario as the technical indicators reflect a cautiously bullish bias. The pair is comfortably above its simple moving averages (SMA), the MACD is regaining strength above its red signal line, while the RSI and the Stochastics are sloping upwards, though in overbought area, hinting that downside corrections may not take long to emerge.
If the bulls breach the 1.3515 top, immediate resistance could come around the 1.3615 barrier that was mainly active during the 2017-2018 period. Beyond that, the spotlight will turn to 1.3770, where the market action found both support and resistance early in 2018. A violation at this point could send the price towards the 1.3900 round level.
Otherwise, a downside reversal could initially stall around 1.3330, and if this fails to hold, the next stop could be near the 1.3200 level. Slightly beneath the latter, the long-term descending trendline and the 20-day SMA will be closely watched too, though only a close below the upper surface of the ascending channel could raise concerns. A decisive step below 1.2980 could further stretch the downside move.
Summarizing, GBPUSD is looking bullish in the short-term, with immediate resistance expected to occur somewhere between 1.3515 and 1.3615. Some weakness cannot be ruled out either, as the market has entered overbought territory, though any decline could be just a correction in the uptrend unless the price closes significantly below 1.3050.
