GBPUSD is hovering within the 20- and 50-day simple moving averages (SMAs) after the bearish movement from the 1.1400 mark on Monday. In the short-term, the price is failing to endorse a bullish correction and is shifting the bias to neutral.
Technically, the MACD oscillator is still strengthening its positive momentum, while the RSI is moving sideways near the neutral threshold of 50.
Should prices reverse lower, immediate support could come from the 20-day SMA at 1.1205. Below that, the 1.0910 barrier is another major support ahead of the 1.0535 level. Further losses would open the way towards the record low of 1.0325.
In the event of an upside reversal, the 50-day SMA at 1.1400 could act as a barrier before being able to re-challenge the 1.1490 resistance level. A break above this line would test the long-term downtrend line around 1.1550. Further gains would lead the way to a more bullish outlook in the near-term meeting the next resistance levels such as 1.1750 and 1.1890.
In the bigger picture, the pair is bearish as long as it holds below the 200-day SMA and the falling trend line. In case it violates these lines, bulls could take the upper hand.Â
