GBPUSD is continuing yesterday’s rebound on the medium-term ascending trend line, which has been standing since December 2018 and at the same time confirming another touch at the 38.2% Fibonacci retracement level of the upleg from 1.2390 to 1.3380, around the 1.3000 key level. The short-term bias looks positive as the RSI keeps gaining ground slightly below the neutral threshold of 50.
The 40- and then the 20-day simple moving averages (SMA) currently near the 23.6% Fibonacci mark of 1.3150 could be a trigger point for steeper bullish action before meeting the 1.3200 psychological level. Higher, resistance could be faced around the 1.3270 barrier, taken from the peak on March 27, though more buyers could be waiting to enter once the price breaks the nine-month high of 1.3380.
In the alternative scenario, if cable retreats and slips beneath significant obstacles such as the uptrend line, the 38.2% Fibonacci region and the 200-day SMA, it could touch the immediate support at 1.2960. A continuation of the decline could drive the bears until the 50.0% Fibonacci of 1.2885, while a sharper movement could open the door for the 61.8% Fibonacci, which overlaps with 1.2770.
In brief, GBPUSD has reversed to the upside again after finding strong support on the diagonal line, suggesting that a bullish rally could come.
