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Denis Sergienko • 2021-05-31

Technical Analysis: GBPUSD consolidates recent gains, bulls seek 1.4220 breakout

Technical Analysis: GBPUSD consolidates recent gains, bulls seek 1.4220 breakout

GBPUSD fades bounce off monthly support line during the quiet Asian session on Monday. The cable pair remains pressured amid the US dollar’s recent rebound but stays near to the key resistance established in early May. Given the 100-SMA’s additional downside support, amid normal RSI and mildly upbeat MACD, GBPUSD remains firmer and hence another battle to the key 1.4220 hurdle can’t be ruled out. However, any further upside will need a daily closing beyond the stated resistance before eyeing the yearly top close to 1.4350.

Meanwhile, a downside break of the stated support line near 1.4145 needs to slip beneath the 100-SMA level of 1.4120, not to forget the latest swing lows near the 1.4100 threshold, to recall the sellers. The follow-on bearish impulse will also struggle around May 13 bottom of 1.4000, a break of which will amplify the selling pressure towards the 1.3925 support level.

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