· GBPUSD looks neutral in very short-term
· A jump above 1.2630 could add some optimism
· Stochastic and MACD are mixed
GBPUSD has successfully jumped above the 200-day simple moving average (SMA) with the next crucial obstacle coming from the short-term downtrend line and the 50-day SMA around 1.2590.
Technically, the MACD oscillator is still developing with weak momentum above its trigger line and below the zero level, while the stochastic is extending its upside movement towards the overbought region after the bullish crossover within its %K and %D lines.
If the market overcomes the diagonal line, immediate resistance could be faced from the 1.2630 barricade ahead of a test of the 1.2708 mark. However, the broader outlook would shift to a more neutral one as only a break above the six-month high of 1.2892 could switch the bias to bullish.
On the other hand, a break beneath the 1.2465 support level could endorse the short-term bearish movement, meeting the five-month low of 1.2300. Steeper decreases could turn traders’ attention towards the 1.2186 bottom.
Summarizing, GBPUSD has been moving sideways since April 25 as it is holding within the SMAs, and a move above the downtrend line could change the broader picture to neutral too.