GBPUSD continues to tackle the 1.3000 barrier, which has proven to be more durable, holding strong since mid-March. That said, the falling simple moving averages (SMAs) are endorsing the descent, and appear to be reinforcing bearish defences, which are dampening bullish prospects in the pair.
Moreover, negative momentum has yet to show signs of significant waning, something also being reflected in the short-term oscillators, which are skewed to the downside. The uptick in the RSI, which is in the bearish region has yet to become convincing, while the stochastic oscillator is exhibiting a strong negative charge. The MACD, is in the negative region and a tad above its red trigger line but is showing no dwindling in bearish impetus.
For the descent to resume, sellers would need to drive the price below the 1.3000 mark as well as the 17-month low of 1.2972 and the adjoining lower Bollinger band in its vicinity. Subsequently, the bears could then meet the next downward limitations at the 1.2854-1.2913 support border, moulded by the troughs from October until early November 2020. Successfully diving past this too, the 1.2800 handle may try to delay a deeper drop aimed at the critical 1.2643-1.2686 support border, which extends back to mid-June 2020.
Alternatively, if sellers fail to overwhelm the 1.3000 level, upside impetus could face initial resistance at the mid-Bollinger band at 1.3083 ahead of the 1.3147 high. Another leg higher, the upper Bollinger band at 1.3193, coupled with the descending 50-day SMA at 1.3216, could prevent buyers from stretching towards the 1.3270-1.3300 resistance band. However, if buying interest endures and overpowers the neighbouring 100-day SMA at 1.3332, the bulls may then propel for the 1.3436-1.3485 boundary.
Summarizing, GBPUSD is sustaining a bearish bias below the SMAs and the 1.3270-1.3300 barrier. A dive in the price extending beyond the 1.2854-1.2913 support band could reinforce negative pressures. Yet, for significant optimism to return in the pair, the price would need to lift past the 1.3436-1.3485 obstacle.
