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  • GBP/USD was seen consolidating the recent strong move up to multi-year tops.
  • The set-up still favours bullish traders and supports prospects for further gains.

The GBP/USD pair seesawed between tepid gains/minor losses through the mid-European session and consolidated the recent strong gains to near three-year tops. The pair was last seen trading just below mid-1.3800s, nearly unchanged for the day.

Given this week’s bullish breakthrough the 1.3755-60 congestion zone, the near-term bias remains tilted firmly in favour of bullish traders and supports prospects for additional gains. The positive outlook is reinforced by the fact that oscillators on the daily chart maintained their bullish bias and are still far from being in the overbought territory.

Hence, some follow-through move beyond the 1.3865 region, towards reclaiming the 1.3900 round-figure mark, remains a distinct possibility. A sustained strength above the latter will be seen as a fresh trigger for bullish traders and push the GBP/USD pair further towards the 1.3950-60 intermediate resistance en-route the key 1.4000 psychological mark.

On the flip side, the 1.3800 round-figure mark now seems to protect the immediate downside. Any further fall might be seen as a buying opportunity and help limit the downside near the 1.3760-55 resistance breakpoint. That said, a subsequent break below might prompt some technical selling and accelerate the corrective pullback toward the 1.3700 mark.

GBP/USD 4-hourly chart

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Technical levels to watch