The GBP/USD pair extends its sideways consolidative price move for the second day in a row, remaining in a narrow range below the 1.2700 level during Wednesday's Asian session. Meanwhile, the lack of major purchasing calls for caution before extending the recent rally from the 1.2625-1.2620 zone, or the lowest level since mid-May reached last.
From a technical perspective, the recent pullback from the 1.2860 area, or a three-month peak touched on June 12 stalled near the 50-day Simple Moving Average (SMA). The said support is currently pegged near the 1.2645-1.2640 region, which now coincides with the 100-day SMA and should act as a key pivotal point. A convincing break below will be seen as a fresh trigger for bearish traders and drag the GBP/USD pair further below the 1.2600 round figure, towards testing the next relevant support near the 1.2560-1.2555 zone en route to the 1.2500 psychological mark.
On the other hand, the 1.2700 round figure is anticipated to operate as an immediate barrier ahead of the 1.2720-1.2725 supply zone. Some follow-through buying and sustained strength beyond will indicate that the recent corrective slump has ended. Given that oscillators have been recovering on the daily chart, the GBP/USD pair may accelerate its move towards reclaiming the 1.2800 barrier. Bulls may finally attempt to challenge the multi-month high near 1.2860 and push spot prices further higher to the round figure of 1.2900.
On the other hand, the 1.2700 round figure is anticipated to operate as an immediate barrier ahead of the 1.2720-1.2725 supply zone. Some follow-through buying and sustained strength beyond will indicate that the recent corrective slump has ended. Given that oscillators have been recovering on the daily chart, the GBP/USD pair may accelerate its move towards reclaiming the 1.2800 barrier. Bulls may finally attempt to challenge the multi-month high near 1.2860 and push spot prices further higher to the round figure of 1.2900.
