GBPUSD is neutral in the short term and is consolidating gains made after breaking above the key 1.3500 level last week. The pair maintains an overall bullish undertone. The short-term technicals are neutral to bullish.
The market is well-capped below the 1.3600 level which is now a strong resistance level. There is scope for a move higher out of the current consolidation range but prices need to see a sustained move above last week’s high of 1.3612 (January 3). Only a clear break above this level would increase the odds for a move beyond last year’s 1.3656 top.
Downside risks increase below immediate support at 1.3500. A dip lower from here would expect to find support at 1.3300 and then from here, 1.3000 comes into focus. Anything lower would fundamentally change the market structure.
For now, GBPUSD holds a neutral stance in the short term but a continuation of the bullish phase cannot be ruled out yet. In the bigger picture, the bullishly aligned 50-day and 200-day moving averages support the positive outlook.