The British Pound is positioned to gain ground against its major counterparts in the near term, as a series of bullish technical patterns take shape across multiple GBP crosses. Here are the key levels to watch for GBP/USD, GBP/JPY and EUR/GBP in the weeks ahead.To get more news about WikiFX, you can visit wikifx.com official website.
The British Pound looks set to extend recent gains against the US Dollar, as prices breaches Descending Triangle resistance and remains constructively positioned above psychological support at 1.3900.
Bullish moving average stacking, in tandem with the RSI and MACD tracking above their respective neutral midpoints, suggests that the path of least resistance is higher.
A retest of the monthly high (1.4009) looks likely in the near term, with a break above needed to carve a path for the exchange rate to challenge the yearly high (1.4241).
Alternatively, a daily close below 1.3900 could neutralize short-term buying pressure and precipitate a short-term pullback towards the 21-EMA (1.3841).GBP also appears poised to climb higher against the Japanese Yen in the coming days, as prices continue to track within the confines of an Ascending Channel and hold above the psychologically imposing 150.00 handle.
Once again, with the RSI and MACD tracking firmly above their neutral midpoints, bullish momentum seems to be building and could drive price higher in the short term.
A daily close back above the 8-EMA (150.55) probably opens the door to a retest of the April 20 high (151.98), with a convincing push above bringing the yearly high (153.41) into the crosshairs.
However, if Ascending Channel support and the 34-EMA (150.18) gives way, a pullback to the 78.6% Fibonacci (148.51) could be on the cards.The technical outlook for EUR/GBP rates continues to point to further downside, as prices break back below the trend-defining 55-EMA (0.8660) and Andrews Pitchfork median line.
Indeed, with RSI and MACD appearing to rollover in a bearish fashion, the primary downtrend extending from the September 2020 high may reassert itself in the coming weeks.
Slipping back below the 21-EMA (0.8624) likely triggers a push back towards the April 19 low (0.8589), with a convincing push below carving a path to challenge the yearly low (0.8472).
However, if prices can clamber back above the 55-EMA (0.8660), a retest of the monthly high (0.8719) could be on offer.