GBPUSD although having pushed back above all simple moving averages (SMAs), appears rather flat between 1.2246 and the 1.2516 level, that being the 61.8% Fibonacci retracement of the down leg from the 1.3200 high to the 35-year low of 1.1410. The technical oscillators reflect a short coming in directional momentum by painting a doubting picture, with the SMAs tilting slightly negative and the pair finding difficulty to exhibit further improvements.
The MACD is just below zero but above its red trigger line, while the RSI has stalled mid-way in bullish territory. That said the stochastic lines are in overbought territory, not giving any clear signals of a pullback or interest for further advances.
If buying interest picks up above the SMAs, initial resistance could come at the 61.8% Fibo of 1.2516 prior to the 1.2573 barrier. Another push higher could revisit the 1.2646 peak, which if violated, could send the pair to challenge a resistance region from the 76.4% Fibo of 1.2775 to the 1.2800 handle.
On the other hand, a dip below the 1.2400 mark – where a bearish crossover between the 50- and 100-period SMAs is located – may send the price to rest at the 50.0% Fibo of 1.2300. Steering down, an important support hurdle, being the 200-period SMA at 1.2260 and the nearby low of 1.2246, may impede the price from confronting the support section from the 1.2165 trough to the 1.2130 level. Stepping beneath, the 38.2% Fibo could come in defence of declines towards the 1.1972 obstacle.
Overall, the short-term displays a neutral-to-bearish tone. Yet, a break above 1.2646 or below 1.2246 could set the next direction.
