GBPUSD held in losses this week, dropping to the 1.3240 support level and near to the Ichimoku cloud. The RSI in the four-hour chart continues to miss direction in bearish area, while the MACD is holding below the zero line. The red Tenkan-sen keeps flattening below the blue Kijun-sen line, reducing chances for a meaningful recovery in the short-term trading.
However, should the price close comfortably above the 40-period moving average (SMA) (1.3308), which has been unbreakable over the past sessions, traders could add more value to the pair, pushing the market up to 20-period SMA currently at 1.3340. The eight-month high of 1.3481 and the 1.3513 resistance from December 2019 could be in focus.
In the negative scenario where the 40-period SMA halts upside movements, the market could retest the 1.3240 support. If this proves easy to overcome this time, the decline may next pause somewhere near the 1.3160 barrier, while even lower, investors could shift attention to the 1.3050 number.
In brief, GBPUSD is in a bearish mode in the very short-term timeframe and bullish in the bigger picture.
