- GBP/USD treads water as bulls and bears jostle between crucial resistance and support.
- Looming bear cross on MACD, failure to cross 1.2450 hurdle tease sellers.
- Two-week-old ascending trend line, 200-SMA limit downside moves.
- RSI conditions suggest further grinding towards the north.
GBP/USD struggles for clear directions as it floats around 1.2330 amid the initial hour of London open on Thursday. In doing so, the Cable pair trades within an important trading region amid contrasting oscillators.
That said, a five-week-old horizontal resistance area restricts the GBP/USD pair’s immediate upside to around 1.2450 while an ascending trend line from January 06, close to 1.2260 at the latest, challenges the bears.
It’s worth noting that the MACD signals are losing the bullish bias but the RSI (14) defends the two-week-old bullish bias despite the latest retreat.
In addition to the 1.2260 support, the 200-SMA level surrounding 1.2155 and the 1.2000 psychological magnet also challenge the GBP/USD sellers, making it harder for them to retake control.
Should the quote drops below the 1.2000 mark, a south-run to refresh the monthly low, currently around 1.1841, can’t be ruled out.
Alternatively, an upside break of 1.2450 will confirm the “rounding bottom” bullish chart pattern that theoretically suggests a rally towards 1.3050.
However, the May 2022 high of 1.2665 and the late April 2022 low of 1.2975 could act as additional upside filters to challenge the GBP/USD buyers during the aforementioned rally.
GBP/USD: Four-hour chart