Technical Analysis: GBPUSD consolidates gains within 10-week-old uptrend
GBPUSD keeps bounces off 200-SMA while picking up the bids near 1.3540 during early Tuesday. The cable dropped to a two-week low before recovering from the key SMA. Not only the quote’s ability to take a U-turn from important technical support but an upward trajectory portrayed by an ascending trend line since November 02 also favor GBPUSD buyers. Hence, a one-week-old falling resistance line, at 1.3605 now, offered an immediate upside hurdle to the sterling buyers ahead of directing them to the multi-month high, flashed earlier in January, around 1.3700. It becomes needless to mention that the March 2018 low near 1.3715 adds to the upside filters.
On the flip side, a clear break below the 200-SMA level of 1.3450 will direct GBPUSD sellers towards the stated medium-term support stretched from early-November, currently around 1.3320. In a case where the UK’s covid woes propel the global rush for risk-safety and favor the US dollar rally, taking the quote below the 1.3300 threshold, the pair might not hesitate to question December lows surrounding 1.3130.