GBPUSD continued to flirt with the 1.1400 round level for the fourth consecutive trading day, despite its muted tone early on Tuesday.
The price was also pushing for a close above a short-term descending trendline, which has kept the bulls under control so far this month.
Despite the efforts, the technical picture continues to question the prospect for a meaningful rally. The RSI has barely increased above its 50 neutral mark, remaining below its previous high, while the stochastics seem to be looking for a bearish reversal not far below their 80 overbought level.
Besides, with the 50-day simple moving average (SMA) and a longer-term descending trendline lying within a short distance from the current price action at 1.1480 and 1.1697 respectively, selling pressures may not take long to reemerge.
Should the bulls dominate above the key constraining zone of 1.1830, the recovery could pick up steam to 1.2150.
On the downside, the 20-day SMA at 1.1140 may attract attention given its limitations last Friday. If it proves fragile, the pair may seek shelter near the previous low of 1.0922. Breaking that bar too, the sell-off could stabilize somewhere between 1.0660 and 1.0538 before heading for the record low of 1.0324.
In brief, although GBPUSD is trying to switch to the bullish side, there are still a couple of obstacles which stand in the way higher.