GBPUSD stays depressed at the six-month low even as bears struggle with a horizontal area comprising multiple levels marked since early February. Also challenging the downside bias is the oversold RSI (14) line. With this, a corrective bounce toward May’s bottom of around 1.2310 can be witnessed. However, the 200-SMA on the daily chart, around 1.2435 at the latest, appears a tough nut to crack for the Cable pair buyers afterward. Even if the Sterling manages to cross the 1.2435 hurdle, a downward-sloping resistance line from July, close to 1.2540 by the press time, will act as the last defense of the pair bears.
On the contrary, the Pound Sterling’s sustained weakness beneath the 1.2200-2190 key support zone could quickly drag it to the 38.2% Fibonacci retracement of September 2022 to July 2023 upside, near 1.2090. Following that, the 1.2000 psychological magnet and a 10-month-old broad support area surrounding 1.1900-1860, adjacent to the yearly low of around 1.1800, will be in the spotlight.
Overall, GBPUSD bears appear running out of steam but the bulls have a long and bumpy road to travel before taking control.