GBPUSD Flies To New 34-Month High, Next Level 1.40

GBPUSD skyrocketed to a fresh 34-month high at 1.3950 after the successful climb above the 1.3745 area. The tendency has been strongly positive since May 2020 and the price is standing well above the short- and long-term simple moving averages (SMAs) in the daily timeframe.

In trend indicators, the Ichimoku lines are pointing upwards as well, while the RSI is heading north in the 70 level and the stochastic oscillator is holding in the overbought zone, posting a bullish cross within the %K and %D lines.

If the buying interest persists and the pair continues the aggressive upside move, immediate resistance could come from the 1.4000 psychological level, ahead of the 1.4100 and 1.4200 round numbers. More gains could drive the market until the 1.4345 hurdle, registered in January 2018.

All in all, GBPUSD created five straight bullish weeks, however, in case of a downside correction, the next supports could be faced from 1.3745 and the ascending line around 1.3560. A penetration of the aforementioned line could shift the focus to neutral.