• GBPUSD creates bearish correction

• Finds strong support at 200-day SMA

GBPUSD failed to climb above the 20-day simple moving average (SMA) over the past five days and is falling back near the 1.2500 psychological mark, which holds near the 200-day SMA.

Technically, the MACD is diving beneath its trigger line in the bullish region, while the RSI is slipping near the neutral threshold of 50, both indicating more losses in the short-term timeframe.

If the price extends its recent pullback from the 20-day SMA, the market could hit the 1.2500 round number and the 38.2% Fibonacci retracement level of the down leg from 1.3140 to 1.2035 at 1.2460. Even lower, the 50-day SMA at 1.2360 may halt further declines.

Alternatively, should the price reverse higher, the 50.0% Fibonacci of 1.2590 could act as the first line of defence. Further bullish movements could then cease at the recent resistance of the 61.8% Fibonacci of 1.2720 ahead of the next handles of 1.2800 and 1.3000.

In brief, despite their temporary drop the pair seems unable to complete a clear move both above and below the 1.2590 and the 1.2500 lines. Hence, it is most likely that the consolidation phase will resume until fresh catalysts emerge.