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    Technical Analysis – GBPUSD back above 1.53 on weakened upside bias

    GBPUSD rose for a third day on Thursday to a 2-week high as it extended its gains above the 1.53 handle. Looking at the momentum indicators, RSI has stalled just above 50 and the stochastics are still rising, though they could be reversing soon as the %K line has moved into overbought territory. This suggests the upside bias is weakening but further gains in the near term cannot be ruled out.

    The medium-term picture remains bearish despite prices rising above the 200-day moving average. The pair has been setting lower highs and lows since June and prices remain below the Ichimoku cloud and the 50-day moving average.

    The Kijun-sen line is the nearest resistance at 1.5382. A break above this level would take GBPUSD within closer reach of the 50-day moving average, which it needs to break to shift the bias to a more neutral one. To the downside, the October 1 low of 1.5106 is the key support level that would determine whether prices remain on the current downtrend.

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