GBPUSD has staged a spectacular uptrend movement from late December amid strengthening positive momentum. Moreover, the pair’s successive higher highs together with the recent golden cross, where the 50-period simple moving average (SMA) has crossed above the 200-period SMA, reinforce the case for a sustained bullish outlook.
Short-term momentum indicators reflect a mixed picture as the RSI is found above its 50 neutral mark. However, despite being above zero, the MACD is located below its red signal line, indicating that the positive momentum might be fading.
Should the bears reassert control, initial resistance might be found at the 1.3748 level. Crossing above the latter could reinforce the pair’s positive momentum, opening the door towards the October high at 1.3834, before buyers shift their attention towards the early-September high at 1.3891.
On the flip side, the first major support could be found at the late-December uptrend line before sellers eye the 50-period SMA currently at 1.3597. A break below that level could turn the fortunes around for the pair, pressuring its price towards the 1.3549 hurdle before moving towards the 1.3430 obstacle. Crossing below the latter could open the door towards the 200-period SMA currently at 1.3386.
In brief, the overall outlook for the pair is bullish amid successive higher lows and higher highs. For sentiment to change, sellers would need to drive the price below the 50-period SMA.