GBPUSD braces for further upside until staying beyond the 100-SMA and a three-week-old horizontal resistance, now support 1.2400. That said, the 38.2% Fibonacci retracement (Fibo.) of the pair’s downside from late April to the recent lows, around 1.2515, appears short-term target for the bulls. Following that, the 1.2600 threshold and the monthly peak surrounding 1.2640 should gain the market’s attention. In a case where the cable buyers dominate past 1.2640, the 200-SMA level near 1.2700 appears a tough nut to crack.
Meanwhile, further selling should wait for a clear downside break of 1.2400 to aim for the early May swing low near 1.2260. In a case where GBPUSD prices remain weak past 1.2260, the recent multi-month low close to 1.2155 will act as the last defense for the bulls. It’s worth noting that sustained trading below 1.2155 could make the quote vulnerable to a slump towards the 1.2000 psychological magnet.
To sum up, GBPUSD has had enough of the south-run and hence a short-term recovery can’t be ruled out.