GBPUSD is in a bullish phase in the near term and is poised to re-test the September peak at 1.3656. In the medium term, the pair is neutral and appears to be trapped between the key levels of 1.3000 and 1.3600.
Last week’s high of 1.3549 remains a strong resistance level. Near-term upside momentum has weakened after RSI reached overbought levels at 70. The overbought conditions in the market could lead to a consolidation phase at current levels.
Any downside is expected to be contained in the support zone near 1.3300 and the 38.2% Fibonacci retracement level (1.3447) of the upleg from 1.2773 to 1.3656. A further retreat would target the 50-day moving average (1.3240) and 50% Fibonacci (1.3215). The market needs to remain above this area to keep the short-term bullish bias in place.
The overall outlook remains positive based on bullish technicals and only a move back below 1.3000 would erase the latest bullish move.
