GBPUSD is struggling to surpass the 1.2270 resistance level but successfully jumped above the short-term simple moving averages (SMAs), which are hovering in the middle of the medium-term trading range of 1.1800-1.2450.
Short-term momentum indicators are also pointing to a continuation of the neutral-to-negative bias. The stochastic is well above the overbought level but is flattening, suggesting some losses, while the RSI is moving slightly lower in the bullish region.
Should prices reverse lower, immediate support could come from the 50- and the 20-day SMAs at 1.2140 and 1.2060 respectively ahead of the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.1960. A drop below this area would take the pair closer to the 200-day SMA at 1.1890 ahead of the lower boundary of the range, which is the 1.1800 psychological level. Further losses would open the way towards the 38.2% Fibonacci of 1.1637, shifting the outlook to bearish.
To the upside, there is immediate resistance at 1.2270, while above that, the next major resistance to watch is the six-month peak of 1.2450. Even higher, the market may battle with the 1.2665 barrier, taken from the highs in May 2022.
In the medium-term, the outlook remains neutral and only a move above or below the consolidation area could change the current view.
, which are hovering in the middle of the medium-term trading range of 1.1800-1.2450. ){kind=link}