GBPUSD is gaining ground after the sell-off towards the two-year low of 1.2120 and is moving towards the inside swing low from April 28 at 1.2410. The technical indicators are mirroring the current bullish bias in the very short-term, as the MACD is jumping above its trigger line in the negative region, while the RSI is pointing up from the oversold territory.
A decisive close above the immediate resistance could reduce negative risks, producing a bullish extension towards the 20-day simple moving average (SMA) at 1.2507. Beyond that, traders will target the low from September 2020 at 1.2670 ahead of the 40-day SMA at 1.2795 and the bottom from November 2020 at 1.2850.
Otherwise, if sellers take the lead again, the pair may pull back to test the nearby support of the two-year trough of 1.2150. Falling lower, the 1.2070 support, taken from the low in May 2020 may be the next target for sellers.
In brief, GBPUSD is strengthening its bullish move in the very short-term, but some caution is warranted as the price is swiftly approaching the crucial boundary set around 1.2400.
