GBPUSD struggles to defend 1.3100 inside a one-week-old symmetrical triangle. Even so, an impending bear cross and failure to cross the horizontal resistance since late February during the latest upswing keep sellers hopeful. That being said, a clear downside break of the 1.3100 threshold, also comprising the stated triangle’s support line, becomes necessary for the bears to step in. Following that, a south-run towards the previous month’s bottom surrounding 1.3000 can’t be ruled out. However, the 61.8% FE level of February-March moves, near 1.2900, may offer breathing space to sellers while assuming oversold RSI conditions at that point.
On the contrary, a convergence of the 50-SMA and 100-SMA guards the immediate upside around 1.3130-35, ahead of the triangle’s upper line close to 1.3150. In a case where GBPUSD rises past 1.3150 buyers can aim for 1.3220, a break of which will test the 1.3270-75 horizontal resistance area, also known as the last defense for bears.
Overall, GBPUSD is likely to witness further downside but a clear break of the 1.3100 support is required to please bears.