GBPUSD is holding beneath the eight-month high of 1.3270 that it reached on August 19, but the outlook remains strongly bullish above the ascending trend line from March 20.
The price is currently capped by the 20-day simple moving average (SMA), finding some difficulty to surpass this line, and the RSI indicator is turning slightly higher in the positive area. However, the MACD oscillator is still heading down below its trigger line in the short-term. The Ichimoku lines are pointing upwards, confirming the longer-term profile.
Any advances above the 20-day SMA and the red Tenkan-sen line could push the market to rest near the 1.3270 resistance. A successful climb above this level could take the price towards the 14-month peak of 1.3515, achieved on December 2019.
On the other side, a falling move could send the price until the blue Kijun-sen line around 1.2946 and the 40-day SMA at 1.2865. Marginally lower, the 23.6% Fibonacci retracement level of the up leg from 1.1409 to 1.3270 at 1.2815 could attract attention before the market breaks the uptrend line and challenge the 38.2% Fibonacci at 1.2560.
Concluding, the market has been in an upward movement and only any aggressive declines below the diagonal line may change this outlook to neutral.
Origin: XM
