The GBPUSD pair has recently bounced off the 200-day SMA, showing some signs of recovery. However, despite this rebound, the pair is still stuck within a short-term trading range. This indicates that there is a lack of strong directional momentum in the near future.
Both the RSI and MACD indicators are showing weak momentum for the GBPUSD pair. Although the MACD has crossed above its trigger line, it is still below the trigger line, suggesting that there is not enough strength in the current uptrend. Similarly, the RSI is moving sideways above the neutral threshold of 50, indicating a lack of strong bullish momentum.
If the GBPUSD pair manages to break above the short-term SMAs, it could retest the upper boundary of the trading range at 1.2785 and potentially reach the five-month high of 1.2825. A more significant move could even push the pair towards the psychological level of 1.3000. On the contrary, a break below the 200-day SMA at 1.2560 could lead to a retest of the support area around 1.2495-1.2520. Further downside momentum could target the medium-term uptrend line at 1.2370 and potentially breach the 1.2180 support level.
GBPUSD has been consolidating within a narrow range since November 24. The lack of a clear directional bias suggests that traders are waiting for a catalyst to determine the next move. A break above 1.2825 or below 1.2495 could pave the way for a clearer short-term direction for the GBPUSD pair in the coming days.
The GBPUSD pair is currently struggling to find a strong trend, with technical indicators showing mixed signals. Traders should closely monitor the key levels mentioned above to determine the next potential move in the currency pair.
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