GBPUSD turned weaker after closing slightly above the 1.2693 key resistance on Monday, looking unable to build on its recent rebound from fresh yearly lows. In subsequent sessions, the pair may retain this consolidation phase given that the RSI remains close to its 50 neutral mark. The Ichimoku indicators also support this view as both the red Tenkan-sen and the blue Kijun-sen line seem to be flattening, though the negatively-sloped simple moving averages (MA) hint that an uptrend is not on the radar yet.
On the downside, the 1.2582 barrier could provide immediate support as it did several times during the past two years. Below that the focus will shift to the 1.2475 bottom, where another failure could trigger stronger selling momentum, probably towards 1.2350.
Alternatively, should the market gain strength above the 1.2693 level, resistance may appear around 1.2830, a previously congestion area. Even higher, the bullish action may take a pause at 1.2920, with traders looking at 1.3040 in case this proves a weak obstacle as well.
In the three-month period, the pair is still in a bearish mode, printing lower highs and lower lows. The negative momentum in the 50 and the 200-day MAs indicates that the chances for a trend reversal are very low at the moment.
Summarizing, GBPUSD holds a neutral bias in the short-term and a bearish one in the medium-term picture.
Origin: XM
