GBPUSD has been holding in a short-term valid descending trend line since January 25. The pair struggled below the 20 and 40 simple moving averages near 1.3900 and 1.3960 respectively. The bearish correction seems to still be in progress, however, the technical indicators are holding in a neutral territory.
In the daily timeframe, the MACD oscillator jumped above its trigger line and posted a bullish crossover but is still standing below the zero line. Moreover, the RSI is flattening near the 50 level with no clear signal for further upside or downside move in price action.
In case of a penetration below the 23.6% Fibonacci retracement level of 1.3810, this could open the path back to the 1.3710 support level. Breaking this level, the next immediate barrier is near the 1.3660 level. Further losses could push the pair lower towards the medium-term ascending trend line near 1.3620, which has been holding over the last past year.
Conversely, a climb above the downtrend line and the SMAs could drive GBPUSD towards the 1.4070 resistance level. Jumping above this area could drive the pair to the 1.4150 resistance level taken from the peak on February 16.