GBP/USD Price Analysis: Pullback remains elusive beyond five-week-old support near 1.2310
- GBP/USD rebounds from intraday low but stays mildly offered.
- Pullback from three-day-old horizontal resistance teases sellers amid overbought RSI, impending bear cross on MACD.
- Key SMAs add to the downside filters, fortnight-old resistance line challenge buyers.
GBP/USD remains mildly offered near 1.2400 even as it bounces off the intraday low heading into the London open on Thursday.
In doing so, the Cable pair reverses the early Asian session’s pullback from the double tops marked around 1.2445-50 amid the nearly overbought RSI (14) conditions. Also teasing sellers is the looming bear cross on the MACD indicator.
However, an upward-sloping support line from November 09, close to 1.2310 by the press time, challenges the Cable pair’s immediate downside.
Following that, the 100-SMA level surrounding the 1.2180 level could probe the GBP/USD bears. It should be noted that the 20-SMA level surrounding 1.1910, acts as the last defense of the pair buyers.
Meanwhile, recovery moves not only need to defy the double tops surrounding 1.2445-50 but should also stay firmer past an ascending resistance line from December 01, close to 1.2475, to keep the GBP/USD buyers on the board.
Should the quote remains firmer past 1.2475, the 1.2500 and 1.2600 round figure may challenge the upside momentum before directing the bulls towards May’s peak of 1.2666.
Overall, GBP/USD bulls seem to run out of steam but the bears need validation from 1.2310.
GBP/USD: Four-hour chart
Trend: Limited downside expected