GBP/USD technical analysis: Failure to cross 21-day SMA highlights near-term horizontal-support

• 21-DMA, February lows limit immediate upside.
• Early-2019 levels regain market attention amid no surprises from RSI.

Other than February month low and recent highs, GBP/USD also lags behind 21-day SMA as it trades near 1.2700 ahead of the UK open on Monday.

With this, horizontal support connecting lows marked on January 02 and May 30 around 1.2580/75 gain market attention. However, 1.2670 and 1.2600 may offer intermediate halts to please short-term sellers.

In a case where prices slip beneath 1.2575, December 2018 bottoms surrounding 1.2480/75 could become bears’ favorite.

The 14-day relative strength index (RSI) flashes no extreme levels, which in turn can help extend the latest pullback.

On the upside, successful trading above 21-day simple moving average (SMA) level of 1.2720 enables the pair to confront 1.2760/75 region including February lows and multiple highs marked since early May.

It should also be noted that pair’s rise past-1.2775 enables it to question April month low near 1.2865.

GBP/USD daily chart

Trend: Bearish