GBPUSD near-term bears found footstep but recovery was so far limited
Bear-leg off 1.4277 (02 Feb lower top) found footstep at 1.3796 (Fibo 61.8% of 1.3457/1.4344 upleg) after Friday’s probe below was short-lived, but recovery attempts were so far limited.
Near-term direction is not clear as daily studies give mixed signals. Momentum is negative, 10/20SMA’s and converging and signaling formation of bear-cross, with strong bearish weekly close also weighing.
Daily RSI is in sideways mode and in neutrality zone (50), while positive signal is generating on reversal of daily slow stochastic from oversold territory.
Stronger bullish signal could be expected on firm break above rising 30SMA (1.3864) which capped recovery attempts in Asia and lift above daily Kijun-sen (1.3901) which would open way for stronger recovery and expose next targets at 1.3960 (Fibo 38.2% of 1.4277/1.3764) and 1.4021 (daily Tenkan-sen).
Otherwise, the downside would remain vulnerable, with bearish signal seen on firm break below 1.3796 Fibo support.
Res: 1.3901; 1.3960; 1.3986; 1.4021
Sup: 1.3796; 1.3764; 1.3700; 1.3655