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GBP/USD: Bullish-Bearish Line at 1.58

GBP/USD made a high in June and the year, at 1.5929 before retreating as we can see in the 4H chart. Last week, it landed around on around 1.5655 before consolidating sideways.

GBPUSD 4H Chart 6/30

(click to enlarge)

As we can see int he 4h chart, the market is still holding a bullish bias in the medium-term as price holds above the 200- and 100-period simple moving averages, and as the RSI holds above 40 for the most part after tagging 80. In the short-term however, there is basically a range between 1.5655 and 1.5930 separated by a middle pivot around 1.5805. 

A break above 1.5805 might open up a bullish continuation outlook and put pressure on the 1.5930 area with upside risk towards the 1.60 psychological level. 

Below 1.58, the market is slightly bearish in the short-term, and if price falls below 1.5650, there would be downside risk towards the 1.555 support/resistance pivot and 200-period SMA. We should limit the bearish outlook to 1.5440 support/resistance pivot area.