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​Technical Analysis: GBPUSD remains directionless between 1.2695-1.2860 area

Despite bouncing off four-month low, GBPUSD isn't out of the woods yet. The reason being the start of the formal UK-EU Brexit deal talks as well as the pair's sustained trading below 10-week-old falling trend line and 50% Fibonacci retracement. However, 200-day SMA and 61.8% Fibonacci retracement limit the pair's short-term downside around 1.2700/2695. Should there be a clear break below 1.2695, the bears will not hesitate to aim for early-October 2019 top surrounding 1.2415.

Alternatively, the pair's sustained break above 1.2860 enables it to question a 100-day SMA level of 1.2975. Though, 1.3000, 1.3070 and 23.6% Fibonacci retracement near 1.3200 could challenge buyers during further recovery.