Technical Analysis – GBP/USD bounces off 1.3200

gbp-l4GBPUSD has gained little on Thursday and it managed to hold above the 20- and 40-period simple moving average (SMA), with the technical indicators feeding prospects for possible positive short-term trading; the RSI holds above 50, while the MACD continues to strengthen in bullish territory above its trigger line.

A move higher could take the pair until the double top at 1.3310, a challenging point over the last week. Higher resistance could next be found around the 1.3475 barrier, taken from the peak on September 1.

Alternatively, if the 20- and 40-period SMAs proves easy to get through, the spotlight would turn to the 1.3200 round number, which is the 23.6% Fibonacci retracement level of the up leg from 1.2854 to 1.3310.

In the short-term picture, GBPUSD turned positive after violating the rebound off the 1.2854 support level. Should the market continue the upward pattern, the outlook may turn brighter above 1.3310.

Origin: XM

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