GBPUSD has declined considerably after touching a three-month high of 1.2815 on June 10, while during yesterday’s session it posted a fresh three-week low around the 1.2400 handle and is currently not far above that nadir.
The flat Tenkan- and Kijun-sen lines serve as a testament to the possible upside retracement. The RSI indicator is suggesting a pullback in the very short-term as it is gaining some ground above the 30 level. On the other hand, the MACD is still hovering below its trigger and zero lines endorsing the negative scenario in the longer timeframe.
Immediate resistance to further increases may be taking place around the 1.2450 barrier, while the red Tenkan-sen line at 1.2483 could provide additional resistance in case of any advances. The region around the 38.2% Fibonacci retracement level of the up leg from 1.2075 to 1.2815 at 1.2532, which overlaps with the 20-period simple moving average (SMA) could be a strong obstacle for bulls. Also, a break above the short-term falling trend line could send prices above the 40-period SMA towards the 1.2590 resistance and the 23.6% Fibonacci of 1.2640.
A move to the downside may meet support around the latest lows at 1.2400. Below that, the 61.8% Fibonacci of 1.2360 could attract attention ahead of the 1.2200 psychological mark.
The region around the current level of the Tenkan-sen at 1.7723 could act as an additional barrier in case of stronger bullish movement.
The short-term picture is looking predominantly bearish at the moment, with price action taking place below the 20- and 40-period (SMAs), as well as below the Ichimoku cloud.
