GBP/USD technical analysis: Trapped in a 25-pip range beneath 21-HMA, RSI oversold

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  • Buyers and sellers jostle inside a small range between important levels.
  • The oversold RSI signal brighter chances of a pullback.

With the traders awaiting fresh clues to follow, the GBP/USD pair trades choppy in a small range while taking the rounds to 1.2600 ahead of the British market open on Monday.

While latest lows surrounding 1.2580 limits the pair’s immediate declines, 21-hour moving average (HMA) caps the adjacent rise around 1.2605.

However, oversold levels of 14-bar relative strength index (RSI) signal brighter chances of an upside break of 1.2605 and the following run up to 1.2650 confluence including 50-HMA and 38.2% Fibonacci retracement of a latest downpour.

On the contrary, a downside break of 1.2580 can drag the quote to May-end low near to 1.2560 whereas December 2018 bottom near 1.2480 could please bears afterward.

GBP/USD hourly chart

Trend: Pullback expected

 

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