GBPUSD has paused its downtrend and has a neutral bias since trading within a range between 1.5873 and 1.6225 during the last 3 weeks. Prices are capped by the 50% Fibonacci retracement level of the 1.6523 – 1.5873 downleg (September 19 high – October 15 low). This resistance level stands at 1.6197. The 23.6% Fibonacci level at 1.6024 acts as immediate support while stronger support lies at 1.5873. A break below this would strengthen the bearish bias for another leg lower to target the key psychological level of 1.5600.
The overall market structure is bearish as confirmed by the falling Ichimoku cloud and prices being below the 200-day moving average. The near-term neutral bias is confirmed by the flat tenkan-sen and kijun-sen lines and the RSI being on the 50 point line.