GBPUSD maintains a neutral bias in the short term and has been trading sideways in the 1.31 to 1.33 range during the past 3 weeks.
Technical indicators on the daily chart are neutral, suggesting that broader range trading will continue for now. RSI and MACD are both moving sideways and are slightly in bearish territory.
Based on Fibonacci analysis, the current range is between the 32.8% and 61.8% Fibonacci retracement levels of the upleg from 1.2773 and 1.3656.
The pair has managed to trade above the key 1.3000 level since declining from the September 20 high. This looks like a strong support level, which if broken to the downside would bring weakness in the market and put the focus on the 1.2773 low.
To the upside, prices need to clear 1.3319 (38.2% Fibonacci) and make a firm break of 1.3448 (23.6% Fibonacci) in order to see a re-test of the 1.3656 high. At this stage, GBPUSD would resume the uptrend that started from 1.2773.
The neutral bias is expected to continue in the short-term. The market needs a catalyst to break out of either side of the current range in order to see a significant move either above 1.33 or below 1.30 in the near term.
