GBPUSD maintains a neutral stance both in the short and medium term. The recent one-month uptrend that took the pair to 1.3550 in early December has reversed lower but prices managed to stay above the 50-day moving average.
Downward pressure has eased and a strong support zone has formed around the key 1.3300 level and the 50% Fibonacci retracement of the latest November-December upleg from 1.3038 to 1.3550.
Strong resistance at 1.3500 needs to be breached in order to shift back to a more bullish bias, otherwise, more range trading is expected to continue in the near term between 1.3300 and 1.3500.
Looking at the big picture, the overall trend is up and this is highlighted by the positively aligned 50 and 200-moving averages. The outlook is positive since the market is located above the 50-day MA, giving scope for a rise towards the 1.3500 area. However, the RSI indicator is mostly neutral, which makes it unlikely for a strong upside move in the near term.
