- GBP / USD bounces off the two-week horizontal line to update the intraday high.
- A bullish MACD and sustained strength above the 50 SMA favors buyers.
GBP / USD moved slightly higher during the Asian session on Tuesday, approaching the 1.3345 region after strong movements in both directions the day before. The pair reached a new high since early September on Monday in the 1.3397 region, then fell back around 135 pips to fall to a low of 1.3262.
However, the current bounce from a horizontal line connecting the highs since November 11 joins a bullish MACD to favor the pair’s bulls. The intact support of the 50-period SMA also supports the odds of a further recovery.
As a result, the round 1.3400 level acts as an immediate bullish hurdle for GBP / USD buyers ahead of the yearly high around 1.3485.
Should it manage to rise above that level, the late 2019 high near 1.3515 could re-focus attention.
Meanwhile, a break to the downside of the immediate horizontal support at 1.3310 could point to the uptrend line from Nov 2, now 1.3262, before retesting the 50-period SMA level at 1.3238. However, any weakness below that level will steer GBP / USD sellers towards the November 12 low near the round 1.3100 level.
GBP / USD 4 hour chart
GBP / USD technical levels
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