GBPUSD - Narrowing range

GBPUSD (1H) - intraday bullish bias

The pound sterling is trading sideways between major levels of 1.2820 and 1.2920. Market's indecision is likely to last until a breakout shows the next direction. As the RSI indicator hovered over the over-sold area, the price found enough buying interest to pull back. If 1.2820 holds well, we would expect a short-term rally towards the psychological level of 1.2900. Without solid catalyst the cable is unlikely to make a breakthrough any time sooner though.

Key support: 1.2820
Key resistance: 1.2900