GBPUSD has been creating a bearish tendency since November 2007 following the reversal on the 2.1161 resistance level. This year the pair is posting a bullish rally as it has so far posted a positive performance of almost 9%. Following the critical bounce off the 1.1986 barrier, a 31-year low, Cable has been printing an ascending move and signals a further upside move.
On a monthly basis, there is a lot of scope for the rise to continue as the next major level to have in mind is the 1.3820 resistance barrier and moreover, the 1.4000 strong psychological handle if the price breaks the 1.3655 resistance obstacle upwards. Technical indicators are confirming the bullish picture as both, MACD and RSI, are rising and they are approaching the positive zone.
Shifting to the weekly timeframe, an alternative scenario, is a bearish retracement towards the 1.3000 significant psychological level and the 1.2770 support barrier if the pair penetrates to the downside of the uptrend line, which is holding since March 2017. The price needs to go through critical obstacles such as the 100 and 50 simple moving averages (SMAs – weekly).
In addition, in the daily timeframe, the momentum oscillators are standing above their neutral levels. Despite that, the MACD oscillator dropped below the trigger line but the Relative Strength Index (RSI) is flattening. The most probable case is an upward movement during the next year, in the absence of any notable surprises.
