GBPUSD has been moving sideways over the last few sessions, remaining above the 200-day simple moving average (SMA) but the momentum is weak for now. The pair is still holding in an ascending tendency after the bounce off the record low of 1.0325; however, the technical oscillators are suggesting a bearish correction may be on the cards.
The MACD oscillator is moving lower below its trigger line in the bullish region, while the RSI is pointing down near the neutral threshold of 50.
If the pair remains above the 200-day SMA and surpasses the 20-day SMA as well, then the price may reach the previous high of 1.2450, which is a six-month high, before rallying to the 1.2670 barrier.
In the negative scenario, a drop below the 200-day SMA could open the way for a retest of the short-term uptrend line at 1.2000 before touching the 1.1900 psychological mark. Further losses could switch the outlook back to bearish, hitting the 50-day SMA at 1.1800 and the next support levels such as 1.1750 and 1.1640 respectively.
Summarizing, GBPUSD is bullish in the short-term timeframe and if there is a climb above the previous top, that would increase the optimism for further bullish actions in the longer-term outlook.