GBPUSD is confronting the lower part of the 1.3105-1.3200 buffer zone, which has defended the broader positive structure since November 2020. The longer-term 100- and 200-day simple moving averages (SMAs) are endorsing a bearish trend, while the fresh dip in the 50-day SMA, indicates the downward trend has intensified.
The falling Ichimoku lines suggest firm bearish forces are present, while the short-term oscillators are skewed to the downside. The MACD, far south of the zero threshold, is sinking deeper beneath its red signal line, while the stochastic oscillator is sustaining a strong negative charge in the oversold territory. The RSI is just underneath the 20 level and has yet to confirm waning in its bearish bearing.
If the 1.3105 barrier fails to keep negative pressures at bay, preliminary downward limitations could evolve around the 1.3000 mark prior to the 1.2854-1.2913 support band, which stretches back to the October 2020 lows. Should sellers maintain dominance, they could then meet the 1.2800 handle before pursuing the 1.2643-1.2686 support border that began around mid-June 2020.
Otherwise, if the 1.3105 region provides buyers with a foothold and the pair lifts back above the 1.3200 level, downside defences could commence around the 1.3271 inside swing low ahead of the descending Ichimoku lines at 1.3311 and 1.3358 respectively. Pushing higher, buyers may then encounter a tough resistance section beginning from the Ichimoku cloud’s floor at 1.3453 until the 50-day SMA at 1.3500. In the event the bulls pilot above the cloud, the door opens for a test of the fortified 1.3620-1.3661 resistance band, which encapsulates the 200-day SMA.
Summarizing, GBPUSD’s short-term picture is looking increasingly bearish. A convincing break below the 1.3105 barrier would ramp up the negative outlook. Meanwhile, for optimism to return in the pair, the price would need to climb above the 1.3620-1.3661 resistance band but piloting beyond the 1.3834 high, would be necessary to resuscitate bullish prospects.
