GBPUSD has been moving sideways over the last three weeks, hovering above the short-term simple moving averages (SMAs). The price is holding marginally above the Ichimoku cloud, while the RSI is turning higher around the 50 level and the MACD is flattening near its trigger and zero lines.
If price action remains above the 1.3900 handle, there is scope to test the 1.4015 resistance. Clearing this key level would likely see additional gains towards 1.4180. Rising above it could take prices to re-test the 34-month high of 1.4235.
If the Ichimoku cloud fails to halt bearish movements, then the focus would shift to the downside until the 1.3845 barrier. In case the price breaches this level, that could increase downside pressure until 1.3780. From here, GBPUSD would be on the path towards the 1.3565 low.
Overall, the pair has been neutral since peaking at 1.4235. Near-term weakness is expected to remain as long as price action takes place around the Ichimoku cloud.
