GBPUSD rebounds from a three-month low, with a persisting bearish bias
- GBPUSD in a steady decline since mid-July
- Found its footing just shy of the 200-day SMA
- Can the Bulls stage a comeback?
GBPUSD has formed a structure of lower highs and lower lows since its 15-month peak of 1.3141. Despite the latest rebound from a three-month low, the short-term oscillators point to further downside as the RSI and MACD are well within their hostile territories.
If the selling interest intensifies, the pair could face the recent support of 1.2445, which acted as resistance in January and coincided with the 200-day simple moving average (SMA). Sliding beneath that floor, the price might descend towards the May bottom of 1.2307. Further declines could then cease at the 1.2000 psychological mark.
On the flip side, should the recent bounce extend, the bulls may target 1.2547, which has acted as support and resistance in the past month. A break above that region could open the door for the August resistance 1.2745, which overlaps with the 50-day SMA. Even higher, the June peak of 1.2847 could curb further upside attempts.
In brief, the GBPUSD’s pullback seems to be losing steam, but it’s too early to call for a reversal. Indeed, the short-term decline could accelerate if the pair profoundly closes below the 200-day SMA.