The longer-term charts highlight the challenges facing the pound versus the dollar and if it is to break out of its short-term range, these major resistance points will need to be overcome.
GBP/USD has been locked in a 1.2600 to 1.2825 range since the middle of December and currently sits towards the middle of that trading band.
Big levels on the weekly chart provide the next support and resistance points.
The weekly Ichimoku cloud top is at 1.2605 and 200-week moving average at 1.2845.
The cloud is thick and rising, its base line at 1.1735, and has been supporting the market since November 2023.
A long-term trend resistance line taken off the November 2007 2.1162 high currently sits close to market at 1.2918.
The monthly Ichimoku cloud base is at 1.2895 and the 50-week moving average is at 1.2869, just above the December 2023 1.2825 high.
The daily chart recorded a golden crossover on Jan.
5, the 50-day moving average moving above the 200-day line, but so far this bullish signal has not led to significant gains.
On balance the bulls have a slight advantage, but any further gains depend on sterling's ability to break resistance soon.
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