GBPUSD abandoned the intense but fruitless battle within the 1.3900 – 1.3952 resistance area to seek support near the 1.3829 level, where the 20-day simple moving average (SMA) and the 23.6% Fibonacci retracement of the 1.4248 – 1.3570 down leg overlap.
Despite the pullback, the pair has not confirmed a bearish bias in the daily chart yet according to the RSI and the MACD, which continue to fluctuate around their neutral levels. Meanwhile, the Stochastics have dropped below the 20 oversold zone, suggesting that a pivot point could be around the corner.
Should the pair find new buyers around 1.3829, the spotlight will turn again to the 1.3900 – 1.3952 resistance region. A break above this ceiling would clear the way towards the 61.8% Fibonacci of 1.4032, while not far above, the 1.4100 psychological level, which coincides with the 78.6% Fibonacci retracement, could be the next target.
On the downside, if the price breaks below 1.3829, the 200-day SMA could immediately add some footing at 1.3765, while slightly lower, the 23.6% Fibonacci of 1.3730 could prevent a test around the broken descending trendline and the former support of 1.3668.
Summarizing, GBPUSD is looking neutral in the short-term picture. A break below 1.3829 or above 1.3900 – 1.3952 could change that status accordingly.
Origin: XM
