GBP/USD Price Analysis: Bulls attack 1.3900, seek validation of 200-SMA breakout
- GBP/USD stays firm near 12-day top following an upside break of 200-SMA.
- Resistance line of a two-week-old rising channel guards immediate run-up.
- Previous resistance line from February 24 adds to the downside filters.
GBP/USD picks up bids around 1.3910, challenging the upper-end of the immediate trading range between 1.3898 and 1.3913, amid the initial Asian session trading on Tuesday.
The cable rose to the highest since March 23 the previous day after crossing the 200-SMA. However, the resistance line of an immediate ascending trend channel seems to test the GBP/USD bulls off-late.
Given the upbeat MACD signals and a clear break above the key SMA, not to forget a six-week-long resistance line, now support, GBP/USD looks set to clear the 1.3915 immediate hurdle.
Following that, a downward sloping resistance line from March 04 and the previous month’s high, respectively around 1.3970 and 1.4020, should lure GBP/USD buyers.
Meanwhile, pullback moves need to drop back below the 200-SMA level of 1.3894 before revisiting the multi-day-old support line, at 1.3814 by the press time.
However, GBP/USD weakness past-1.3814 will be important to watch as it comprises the stated channel’s support line and may reverse the bullish hopes of the breakdown.
GBP/USD four-hour chart
Trend: Further upside expected