GBPUSD abandoned the intense but fruitless battle within the 1.3900 resistance area to seek support near the 1.3830 level that is 38.2% Fibonacci retracement of the 1.4248 – 1.3570 down leg overlap.
Despite the pullback, the pair has not confirmed a bearish bias in the daily chart yet according to the RSI and the MACD which continue to fluctuate around their neutral levels. Meanwhile, the Stochastics have dropped below the 20 oversold zone, suggesting that a pivot point could be around the corner.
Should the pair find new buyers around 1.3829, the spotlight will turn again to the 1.3900 – 1.3952 resistance area. A break above this ceiling would clear the way towards the 61.8% Fibonacci of 1.4032, while not far above the 1.4100 psychological level which coincides with the 78.6% Fibonacci retracement. It could be the next target.
On the downside, if the price breaks below 1.3830 or slightly lower, the 50% Fibonacci of 1.3730 could prevent a test around the broken descending trendline and the former support of 1.3668.
To sum up, GBPUSD is looking neutral in the short-term picture. A break below 1.3829 or above 1.3900 – 1.3952 could change that status accordingly.