GBP/USD technical analysis: Remains confined in range near 1.2330-40 confluence region

Barring a knee-jerk reaction last Thursday, the GBP/USD pair has been oscillating well within a broader trading range held over the past one week or so and lacked any firm near-term directional bias. The pair extended its sideways consolidative price action at the start of a new trading week and was seen hovering around the 1.2330-40 confluence zone.
 
The mentioned region comprises of 38.2% Fibonacci level of the 1.1958-1.2583 strong move up and 200-period EMA on the 4-hourly chart, which should act as a key pivotal point for short-term traders. Meanwhile, neutral technical indicators on hourly/daily charts warrant caution before placing any aggressive bets amid Brexit-related uncertainties.
 
Meanwhile, a sustained strength beyond the said barrier might set the stage for a further near-term appreciating move back towards the 1.2400 handle. The momentum could further get extended towards 23.6% Fibo. level resistance - around the 1.2435 region – before bulls eventually aim towards reclaiming the key 1.2500 psychological mark.
 
On the flip side, the 1.2300 round-figure mark now seems to protect the immediate downside, which is followed by strong support near the 1.2270-65 region – marking 50% Fibo. level. Failure to defend the said support now seems to accelerate the slide further towards challenging the 1.2200 round-figure mark – support marked by 61.8% Fibo. level.

GBP/USD 4-hourly chart