GBP/USD gains some ground but still below the descending line.
GBP/USD printed a bullish doji on Thursday near a 2 ½ -month low of 1.2864 before showing some recovery in the following sessions.
While the RSI and the MACD seem to be improving in bearish territory, the market needs to overcome the descending trend-line drawn from the 1.3380 level for the bulls to energise. The 38.2% Fibonacci level of 1.3007 of the 1.2393-1.3380 uptrend and the 20-day simple moving average (SMA) also happen to be in the same neighborhood.
Should the price jump above the line, the spotlight will turn to the 50-day SMA currently at 1.3107, while higher the area between 1.3150-1.3216 where the top of the Ichimoku cloud is also located, may bring a new bullish wave if significantly violated.
Alternatively, the price could shift lower to retest the 50% Fibonacci of 1.2890 and its recent troughs near 1.2864. if the decline extends further, a stronger challenge may come around the 61.8% Fibonacci of 1.2777.
Meanwhile, in the medium-term picture, the outlook has shifted from bullish to neutral after the market reached a bottom at 1.2864, below the previous low of 1.2959, breaking the upward pattern started in mid-December.
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