GBPUSD sellers pushed the price below the 1.2288 barrier this week, which is the 23.6% Fibonacci retracement level of the down leg from 1.3176 to 1.2014.
The MACD has further distanced itself above its red trigger line in the negative territory, but seems to be starting to flatten, so some caution cannot be ruled out in the short-term. The RSI has also weakened after moving slightly into the positive area. It’s worth mentioning that the medium-term picture is still tilting towards a bearish bias, something also suggested by the 50-, 100- and 200-day simple moving averages (SMAs) which are sloping downwards.
Sliding lower the bears could initially stall around 1.2100 before testing the thirty-one-month low of 1.2014. The downside correction could also stall at the support of the January 16 low of 1.1987. If the level is fractured, the door would open for 1.1900 before the 1.1794 level comes into view.
To the upside, if the bulls surpass 1.2288, resistance could come from the 1.2380 low where the 50-day SMA also lies. If the buying interest persists, the 38.2% Fibo of 1.2457 could hinder the attempt to test a tougher barrier around the 50.0% Fibonacci of 1.2593.
In the short-term, the prevailing bearish bias seems to have deep roots and a close above 1.2600 could only suggest otherwise.
