GBPUSD stretched its rally to a fresh 32-month high of 1.3700 in the first trading day of 2021, but it continues to face limitations around the topline of the upward-sloping channel, which it failed to successfully overcome last week.
Technically, the short-term bias remains on the positive side in the daily chart as the price keeps printing higher highs and higher lows above its simple moving averages (SMAs) and the Ichimoku Cloud. In momentum indicators, the MACD is regaining ground above its red signal line, while the RSI and the Stochastics retain a bullish tone and have yet to confirm overbought conditions, all pointing to further improvement in the market.
However, the speed at which the price may rise in the short run may depend on the resistance line currently at 1.3700 and the approaching 1.3755 barrier. Should they give the green light, the bulls may accelerate towards the 1.3900 and 1.4000 hurdles last seen in early 2018.
In the negative scenario, a pullback around the resistance line may initially test support near 1.3600 and then the 20-day simple moving average (SMA) at 1.3468. Running lower, the price could next challenge the 50-day SMA at 1.3300 before sliding towards the Ichimoku Cloud and the bottom of the channel seen around 1.3180.
In brief, GBPUSD is attempting to upgrade its positive outlook, though some difficulties may emerge within the nearby 1.3700 – 1.3755 restrictive region in the near term.
