• GBPUSD capped by 20-day SMA
• Momentum oscillators suggest the end of negative move

GBPUSD is looking strongly bearish in the short term after the pullback from the two-and-a-half-year high of 1.3433. Prices found resistance at the 20-day simple moving average (SMA) and the 1.2750 barrier lately, but the technical indicators are all pointing up, suggesting a scope for upside moves. The RSI is turning higher below the 50 level, while the MACD is jumping above its trigger line below the zero level.

Immediate resistance would likely come from the 1.2750 mark ahead of the flat 200-day SMA at 1.2825, which could be a difficult hurdle for the pair to overcome. Should the pair successfully break above this area and the short-term downtrend line, we may encounter further resistance in the 1.2840 region. Also, the downward-sloping 50-day SMA at 1.2920 is waiting for a test. 

If the pair reverses lower again, support would initially come from the six-month low of 1.2486. Slipping below this level could take prices towards 1.2445, taken from the bottom on May 9. 

In the long-term picture, the outlook remains bullish, but a challenge of the trough of 1.2300 could switch the broader view to bearish.