GBPUSD rebounded off the 200-day simple moving average (SMA), which overlaps with the 23.6% Fibonacci retracement level of the up leg from 1.0325 to 1.2450 at 1.2050 and also found support on a potential uptrend line. However, the market is still developing within a medium-term trading range with an upper boundary the 1.2450 resistance level and a lower boundary the 1.1845 support.
Technically, the MACD oscillator is moving sideways beneath its trigger and zero lines, while the RSI is flattening below the neutral threshold of 50. Both are mirroring the neutral bias in the price action. Also, the 20- and 50-day SMAs continue to flatten slightly above the current market price.
A move to the upside may meet resistance around the 50- and then the 20-day SMAs at 1.2190 and 1.2260 barriers respectively, ahead of the key level of 1.2450 that was tested several times in the past. The region above that area at 1.2670 could endorse the long-term bullish view.
On the other hand, immediate support to further declines may be found around the 200-day SMA at 1.2050 and even lower at 1.1845. If the bears take the upper hand and send the market lower, the 38.2% Fibonacci at 1.1640 may halt the negative moves ahead of the 50.0% Fibonacci of 1.1390.
Overall, both the short- and medium-term outlooks are currently looking neutral, though caution is warranted in the near-term as there are signs of an upside recovery. A climb above the six-month peak of 1.2450 is needed to confirm that.
