GBPUSD fades bounce off yearly low as the cable traders await the UK and the US preliminary PMIs for June. Bearish MACD signals and steady RSI also backs the downside bias. That being said, May’s low of 1.2155 and the 1.2000 psychological magnet can act as immediate supports ahead of the latest trough surrounding 1.1933. In a case where the pair sellers dominate past 1.1933, the 78.6% Fibonacci Expansion (FE) of late March-May moves, near 1.1760, as well as a downward sloping trend line from mid-March around 1.1590, will be in focus.
On the contrary, a convergence of the 20-DMA and a two-month-old horizontal area surrounding 1.2410-20 appears a tough nut to crack for the GBPUSD bulls during the recovery. Adding to the upside filters is a 10-week-long resistance line and 50-DMA, respectively around 1.2460 and 1.2510. It’s worth noting that a clear upside break of the 1.2510 enables the pair buyers to aim for May’s top of 1.2666.
To sum up, GBPUSD is likely to remain bearish unless the quote rises past 1.2510. Considering that, today’s PMIs are less likely to offer any incentive to buyers unless being extremely strong, which is less expected.