GBPUSD has advanced after the pullback on the six-month low near the 1.3200 psychological level. The price started Wednesday’s trading session above the 50.0% Fibonacci retracement level of the upleg from 1.2100 to 1.4375, suggesting that the market would increase bullish movements.
Looking at momentum indicators, the RSI is moving higher, having crossed above the 30-oversold level. In addition, the MACD oscillator is moderately rising and posted a bullish crossover with its trigger line.
In the wake of positive pressures, the market could meet resistance at the mid-level of the Bollinger Band (20-day simple moving average) near the 1.3450 barrier. A successful close above this region could see a retest of the 38.2% Fibonacci near 1.3510, while in case of further gains, the 1.3600 handle would come into scope.
Conversely, a move to the downside and below the aforementioned six-month low could see the 1.3040 support. Should the market increase negative momentum below this area, the 61.8% Fibonacci of 1.2973 could be the next level in focus.
Turning to the medium-term picture, the market seems to be in bearish mode given that the pair trades below the moving averages.
