• GBPUSD continues the upside rally above 1.2500

• 200-day SMA looks strong support level now

• MACD extends the bullish momentum

GBPUSD is looking ready to continue its bullish trend in the short-term timeframe, as it is posting its fourth consecutive green day, breaking beyond the 200-day simple moving average (SMA) and the critical 1.2500 level. Furthermore, the pair reached its highest level in two months, with technical oscillators indicating growing upside momentum.

The RSI is slightly below the overbought territory and is weakening its momentum; however, the MACD remains above its trigger line and within the positive zone, indicating that buyers are still active.

If buyers maintain control, the 50.0% Fibonacci retracement of the down trend from 1.3140 to 1.2035 at 1.2590 would be the first resistance to watch. Running higher, the pair will come up towards the 61.8% Fibonacci level around 1.2720 before settling near the 1.2800 round number.

On the other hand, if the bears push the price below the 38.2% Fibonacci of 1.2460 and the 200-day SMA, it might lead to an aggressive drop below the 23.6% Fibonacci of 1.2300. More declines may open the door for a slide towards the 50-day SMA around 1.2250.

To sum up, despite the recent significant rally, there are certain barriers to consider before a bullish trend reversal occurs in the medium outlook as well.