- GBPUSD trades sideways between parallel SMAs
- Remains within its medium-term neutral pattern
- Momentum indicators improve but stay in negative zones
GBPUSD experienced a strong decline following its break above the rangebound structure in place since November. Despite the temporary violation of the 200-day simple moving average (SMA), the pair reversed back higher before the 50-day SMA curbed its upside.
Should bullish pressures persist, the pair could violate the 50-day SMA and challenge the recent resistance of 1.2682. Higher, the December resistance of 1.2793 could prove to be the next barricade for the price to overcome. Further advances may come to a halt at 1.2826 ahead of the 2024 peak of 1.2892.
On the flipside, bearish actions could send the price to test the March-April support of 1.2574, which overlaps with the 200-day SMA. A dive below that region could open the door for the April bottom of 1.2538 before the 2024 low of 1.2517 comes under scrutiny.
In brief, GBPUSD has been trading sideways within a range defined by the 50- and 200-day SMAs in the past few sessions. Therefore, for the technical picture to improve, the pair needs to break above the recent range.
