- Bulls are required to push GBP/USD above 1.3595 for further upside.
- Flat 50 and 100 EMAs are indicating a reversal after a downside move.
- The RSI (14) in 40.00-60.00 suggests that the asset is still inside the woods.
The GBP/USD pair is juggling in a narrow range of 1.3576-1.3604 after a juggernaut rally from Tuesday’s low of 1.3538.
On an intraday scale, the cable is forming a bullish pennant pattern which signals a consolidation phase after a strong upside move and leads to a further upside in the coming trading sessions. Usually, the consolidation phase denotes the initiation of bids by investors who fail to enter in the initial rally or those investors who place bids, which prefer to enter in an auction after the establishment of a bullish bias.
The 50-period and 100-period Exponential Moving Averages (EMA) have turned flat after remaining downward in the previous trading periods. This signals that the asset is not bearish anymore and a reversal is on the cards.
The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which points over consolidation in the cable.
For an upside momentum, bulls are required to push GBP/USD above the highs build in the early Asian session around 1.3595. The asset may find resistances near Tuesday’s high at 1.3604 and Monday’s average traded price at 1.3617 respectively.
On the flip side, bulls could lose their grip if the major slips 50-EMA, which is hovering around 1.3580 and additional losses could be witnessed towards 1.3568, from where the lower trendline is marked and Tuesday’s low of 1.3538 respectively.