GBPUSD’s negative bearing has been rekindled after the 1.3270-1.3300 resistance band curbed advances, which began from the recorded 16-month low of 1.3000. The falling simple moving averages (SMAs) suggest that the intensity of the downward trend is intact.
Currently, the Ichimoku lines signal prevailing bearish forces despite the rising red Tenkan-sen line. The short-term oscillators are conveying mixed messages in directional momentum. The MACD, in the negative zone, is above its red trigger line but has started to turn lower again, while the RSI is improving in the bearish region. The negatively charged stochastic oscillator, whose %K line has pierced into oversold territory, is promoting additional negative moves in the pair.
If the price slips underneath yesterday’s intraday low of 1.3066, support could commence around the 16-month trough of 1.3000. Diving past this would resuscitate the broader descent that began from the more than three-year high of 1.4248, turning sellers’ focus towards the 1.2854-1.2913 support band. From here, should the price sink deeper and not consider the 1.2800 hurdle, the bears may then aim for the 1.2643-1.2686 support border that extends back to mid-June 2020.
Alternatively, if buying interest ramps up, the red Tenkan-sen line at 1.3183 along with the 1.3200 handle could provide initial upside constraints. Not much higher, the 1.3270-1.3300 resistance boundary may challenge buyers’ efforts to reinstate optimism in the pair. That said, if the pair successfully climbs north of the 1.3300 barrier, the bulls could then encounter the approaching 50- and 100-day SMAs at 1.3348 and 1.3378 respectively. Should upside momentum endure, they may then confront the Ichimoku cloud and the 1.3436-1.3485 resistance barricade.
Summarizing, GBPUSD is exhibiting a bearish bias below the 1.3300 high and the SMAs. A break below 1.3000 could power the bearish outlook, while a price hike beyond the 1.3300 level would be required to trigger positive developments in the pair.
