Technical analysis – GBP/USD sellers take a breather but bearish bias rules

GBPUSD is consolidating around the 1.3300 mark, within the 1.3277-1.3362 support zone that has managed to mute negative forces for now. The falling simple moving averages (SMAs) are presently backing the bearish picture in the pair.

The short-term oscillators are suggesting a moderate waning in negative momentum. The MACD, some distance in the negative zone, is holding beneath its red trigger line. The RSI, in bearish territory, is improving from the 30 level, while the stochastic oscillator is promoting advances in the pair.

In the positive scenario, immediate constraints could originate from the 1.3362 mark and the approaching mid-Bollinger band at 1.3424 ahead of the 1.3513 barrier. Overstepping the latter obstacle, buyers may encounter a fortified section of resistance from the 50-day SMA at 1.3566 until the upper Bollinger band, residing at the 1.3606 high. Conquering this crucial border, the bulls could then eye a region of resistance existing between the 100-day SMA at 1.3675 and the 1.3708 level.

Otherwise, if sellers resurface, initial downside friction could transpire from the 1.3277 boundary of the current buffer zone, which happens to also be the 11-month low. Sliding past this, the neighboring lower Bollinger band at 1.3236 and the 1.3186 low could delay the test of the 1.3105-1.3134 support band. Piercing below this key barricade, the price may then plunge towards the 1.3000 handle before targeting the 1.2913 obstacles.

Summarizing, GBPUSD’s medium-term outlook is growing increasingly negative, as the pair logs lower highs and lows. That said, buyers are fighting back but they would need to drive the price above the 1.3513 high to start to gain some upside momentum.