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Technical Analysis: GBPUSD bounces off monthly low inside falling wedge before key Brexit talks

GBPUSD pulls back from the monthly low to regain 61.8% Fibonacci retracement of May 15 to June 10 upside ahead of the key Brexit talks and speech by the BOE Governor Andrew Bailey. Although the pair's latest recovery gains support from oversold RSI before the key event, bulls are less likely to be assured unless breaking 1.2455/60 resistance confluence comprising 200-bar SMA and the resistance line of a short-term falling wedge formation. It should, however, be noted that the pair's ability to cross 1.2460, backed by positive news from the trade negotiations in Brussels and upbeat comments from BOE Governor, will enable the quote to aim for the mid-month top close to 1.2685/90.

Meanwhile, a downside break of 1.2310 can revisit the bullish pattern's support line, at 1.2255 now. In a case where the bears keep the help below 1.2255 amid downbeat news, May 22 low near 1.2160 might offer an intermediate halt prior to highlighting 1.2000 threshold on the sellers' radars. It's worth mentioning that neither Brexit nor BOE are likely to offer any major positive update and hence the quote is more expected to remain on the back foot than otherwise.

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