GBPUSD eases inside short-term rectangle near multi-month top

With the renewed chatters over the Fed’s next moves, backed by weekend comments from US Treasury Secretary Janet Yellen, the US dollar regains the safe-haven bids lost on Friday amid early Monday. This weighs down GBPUSD inside a two-week-old rectangle formation between 1.4250 and 1.4190. It should, however, be noted that the upbeat MACD could trigger the cable’s bounce off 200-SMA and a two-month-old support line, respectively around 1.4050 and 1.4010. In a case wherein the quote fails to bounce off 1.4010, the 1.4000 psychological magnet will give another chance for the counter-trend traders entry, losing which should recall the 1.3900 levels to the chart.

On the contrary, recovery moves need to cross 1.4180 and the 1.4200 round figure before challenging the stated rectangle’s upper line around 1.4250. It’s worth mentioning that GBP/USD run-up beyond 1.4250 should stay beyond the 1.4300 threshold before challenging the year 2018 high near 1.4375-80.