Technical Analysis: GBPUSD bulls eye 1.4025-35 horizontal resistance

Technical Analysis: GBPUSD bulls eye 1.4025-35 horizontal resistance

GBPUSD extends the upside break of the two-month-old resistance line, now support, towards horizontal hurdles comprising late February tops, around 1.4025-35, during early Tuesday. Although strong RSI and sustained break of the key resistance line favor bulls, the cable will need a daily closing above 1.4035 to keep the recent strength. Following that the 1.4110 level may offer an intermediate halt during the rally targeting the yearly top surrounding 1.4240.

On the contrary, failures to keep the upside break of the 1.4000 threshold will trigger the pullback targeting the prior resistance line near 1.3970. However, GBPUSD weakness past-1.3970 will not hesitate to revisit the early April tops near 1.3915-20 and 50-day SMA close to 1.3870 during the additional south-run. To sum up, sterling bulls need validation of further upside after the previous day’s notable run-up.

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