Technical Analysis: GBPUSD bulls eye another confrontation with 1.3618/24 resistance area

Technical Analysis: GBPUSD bulls eye another confrontation with 1.3618/24 resistance area

Despite recently easing from 1.3575, GBPUSD stays above a one-week-old ascending trend line amid bullish MACD. On the fundamental side, the passage of the Brexit deal and US coronavirus (COVID-19) stimulus also favor the Cable buyers. Though, a downward sloping trend line from December 17, currently around 1.3620, becomes necessary for the GBPUSD bulls to keep the reins. Following that, September 2017 peak close to 1.3660 and March 2018 low near 1.3710 will be in the spotlight.

If consolidative moves break the immediate support line, at 1.3555, 200-SMA near 1.3350 and the monthly bottom close to 1.3190/85 could lure the GBPUSD sellers. However, the December 21 top around 1.3500 and last Tuesday’s low of 1.3303 can offer intermediate halts during the downside. To sum it all, GBPUSD may witness pullback in the short-term but the overall outlook remains bullish.

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