GBP/USD Rebounds from Near 1.3460

GBP/USD traded higher today, after it hit support near the 1.3460 zone, marked by the high of December 28^th. Overall, the pair is trading above the upside support line drawn from the low of December 20^th, and thus, we will consider the short-term outlook to be positive.

A clear and decisive break above the 1.3515 barrier, which is defined as a resistance by the high of November 18^th may signal and trend continuation and perhaps pave the way towards the high of November 9^th, at 1.3605. If the bulls are not willing to stop there either, then we could see them climbing towards the high of November 4^th, at 1.3695.

Taking a look at our short-term oscillators, we see that the RSI is already near 70 and turned up again, while the MACD, already positive, has just crossed back above its trigger line. Both indicators detect strong upside speed and corroborate our view for further advances.

In order to start examining a bearish reversal, we would like to see a dip back below 1.3410. This could confirm the break below the upside line taken from the low of December 20^th, and may initially target the 1.3375 level, defined by the inside swing high of December 16^th. Another dip, below 1.3375, could carry larger bearish implications, perhaps opening the way towards the 1.3285 level, which is the inside swing high of December 16^th. If the bears are not willing to stop there either, we could see them diving towards the 1.3200 or 1.3173 zone, defined as supports by the lows of December 21^st and 20^th respectively.

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