GBP/USD Price Analysis: 21-day SMA guards immediate upside above 1.3900
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GBP/USD Price Analysis: 21-day SMA guards immediate upside above 1.3900

  • GBP/USD wavers around weekly top, fades upside momentum off-late.
  • Sustained break of 10-day SMA, two-week-old falling trend line favor bulls.
  • Bears will look for entries below three-month-old support line.

GBP/USD eases from intraday high, also the weekly peak, to 1.3928 amid a lackluster Asian session on Thursday. In doing so, the cable buyers better 21-day SMA while keeping upside break of 10-day SMA and falling trend line from February 24.

Given the upbeat RSI conditions that join the quote’s successful run-up beyond an ascending support line from December 11, 2020, GBP/USD buyers are likely to overcome the immediate SMA hurdle around 1.3940.

However, any further upside needs to refresh the monthly top above 1.4020 before eying the multi-month high of 1.4243 marked the previous month

On the flip side, the 10-day SMA and previous resistance line, respectively around 1.3905 and 1.3840 can entertain the sellers during any pullback moves.

Though, a multi-day-old support line near 1.3835 should test the GBP/USD bears afterward, which if broken could aim for February lows around 1.3565.

GBP/USD daily chart

Trend: Bullish


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