Technical Analysis: GBPUSD must stay above 1.3555 to keep bulls on the table
GBPUSD keeps the 50-DMA breakout to battle the 100-DMA as traders await final readings of UK Services PMI for December, as well as the US ISM Services PMI for the said month. Although the key DMA breakout and bullish MACD hints at the cable pair’s further upside, a clear run-up beyond the 100-DMA level surrounding 1.3555 becomes necessary for the bulls to rise further towards the five-month-old resistance line and the 200-DMA, respectively around 1.3690 and 1.3740. Also challenging the pair buyers are the 50% and 61.8% Fibonacci retracement levels of July-December downside, close to 1.3570 and 1.3670 in that order.
It’s worth noting that a failure to stay past 1.3555 could drag the quote back to November’s high near 1.3515 ahead of highlighting the 50-DMA level of 1.3400 for the GBPUSD sellers. Should the pair extend the south-run below 1.3400, the 23.6% Fibonacci retracement near 1.3350 may offer an intermediate halt during the fall targeting the year 2021 bottom of 1.3160. To sum up, GBPUSD bulls are at a test and the sellers may take the risk in case of pullback.