Technical Analysis: GBPUSD bulls aim for 1.4000 at fresh yearly high

Technical Analysis: GBPUSD bulls aim for 1.4000 at fresh yearly high

Successful trading beyond the 29-month-old resistance line, not to forget the 50% Fibonacci retracement level of the GBPUSD pair’s June 2016 to March 2020 downturn, favor the cable bulls to eye the 1.4000 psychological magnet as it refreshes the highest levels since April 2018. It should, however, be noted that the quote’s sustained trading beyond the 1.4000 mark might find it hard to cross the 61.8% Fibonacci retracement level near 1.4200 amid overbought RSI, a break of which will eye for the 2018 peak surrounding 1.4376.

Meanwhile, a downside break of the previous resistance line, at 1.3730 now, will drag the quote towards 50% Fibonacci retracement, at 1.3680. Though, any further weakness will be challenged by the December 2019 peak near 1.3515. Should the GBPUSD bear refrain from abating, an ascending support line from May 2020 close to 1.3350-45 will be the key. Overall, GBPUSD is clearly in an uptrend but the pullback can’t be ruled out.

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