Overview: GBP/USD shifted into corrective mode after its upward trajectory off six-week lows was rejected near the 200-SMA, signaling fading bullish momentum and increasing downside risks in the coming sessions.
Momentum: The RSI and stochastic peaked in the overbought area and are now pushing lower. The MACD is drifting toward its red signal line, endorsing the softer price action.
Bearish scenario: A decisive break below the support trendline and the 1.3450 number could pave the way to 1.3400. Additional declines from there could extend to 1.3370.
Risk: A durable move above the 200-SMA and the 61.8% Fibonacci level of 1.3520 could revive upside pressure toward 1.3555. From there, the bulls may attempt to breach the 1.3580 mark with scope to reach May’s triple top around 1.3650.
