GBP/USD - Trapped between trend lines, risk reversal at 2-month low

Yellen’s silence on monetary policy on Friday pushed the GBP/USD higher to 1.2889 levels. The currency pair opened this week at a high of 1.2924 and currently trades around 1.2885 levels. 

Friday’s positive move adds credence to the Thursday’s Doji candle at the trend line support and has confirmed bullish trend reversal, although the spot is still trapped between the trend lines- 

• The trend line sloping upwards from the March low and June low is seen offering resistance at 1.2914
• The trend line sloping upwards from April 10 low and June low is seen offering support at 1.2796

One-month 25-D Risk reversal: No signs of improvement in sentiment

The options market sentiment remains bearish… the 25-delta risk reversal hovers at -0.60; the lowest level since June 27. A negative number indicates the put options are more in demand. 
No sign of improvement in the risk reversal gauge despite the bullish Doji reversal on the daily chart warrants caution.  

GBP/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet on GBP/USD- 

“Technically, the latest advance seems just corrective, as in the daily chart, the pair remains well below a strongly bearish 20 DMA, whilst technical indicators have recovered within bearish territory, with limited upward potential at the time being. Additionally, the pair stalled below the 1.2920/30 region, where selling interest has contained advances for over a week. In the 4 hours chart, the pair settled above a modestly bullish 20 SMA, while technical indicators entered bullish territory, but lost upward strength as the price was unable to surpass the mentioned critical resistance.”