GBPUSD is losing momentum below 1.3000, within a range that has been holding since the jump to a 14-month high of 1.3515 on December 13.
Currently, the cable is developing beneath the 20- and 40-day simple moving averages (SMAs) confirming the weakening move in the market. The RSI indicator is marginally below the 50 level, while the MACD, having posted a bullish cross with its trigger line, keeps fluctuating in the bearish territory.
More downside pressure could drive the pair towards the immediate support of 1.2960 and the 38.2% Fibonacci retracement level of the upward wave from 1.1957 to 1.3515 near 1.2920. Steeper declines could challenge the next key levels of 1.2870, 1.2820 and 1.2770. Below these, the 50.0% Fibo of 1.2735 could attract traders’ attention as well.
In the positive scenario, a successful attempt above the moving averages, the price could meet resistance at the 23.6% Fibo of 1.3145 and before the 1.3210 hurdle registered on January 31 comes into view. If bulls prove stronger, the rally could continue until 1.3285, where any break higher could turn attention towards the 14-month peak of 1.3515, shifting the short-term bias to bullish again.
In the long-term timeframe, the pair retains a bullish structure and only a drop beneath the 50.0% Fibonacci could change it to bearish.
Origin: XM
