GBP/USD Price Analysis: Bulls need to cross 1.2430 and 1.2450 to keep the reins
|- GBP/USD picks up bids to pare intraday losses inside one-week-old bullish channel.
- Tops marked on Friday, Monday challenge Cable bulls ahead of the key 1.2445-50 resistance area.
- RSI conditions suggest that the buyers are running out of steam.
- Sellers need to defy bullish chart formation to retake control.
GBP/USD renews intraday high around 1.2430 as it prods a short-term resistance confluence during early Tuesday. In doing so, the Cable pair reverses the early Asian session losses while struggling with the two-day-old horizontal area, as well as the top line of a one-week-long bullish channel.
That said, multiple tops marked since early December 2022 offer an additional upside hurdle of around 1.2445.
It’s worth noting that the nearly overbought RSI (14) challenges the GBP/USD buyers as they jostle with the key upside hurdles.
Hence, the Cable pair’s latest run-up appears elusive unless the quote stays below 1.2450, a break of which could propel the quote towards May 2022 high near 1.2665-70.
The 1.2500 and 1.2600 round figure may act as intermediate halts during the expected rise past 1.2450.
Meanwhile, pullback moves may initially aim for 1.2400 and the 1.2340 support level ahead of highlighting the 200-Hour Moving Average (HMA) level of 1.2320.
Even so, the 1.2300 rounds figure and the stated channel’s bottom line, currently around 1.2290, can act as the last defense of the GBP/USD pair buyers before welcoming the bears.
Overall, GBP/USD is likely to remain firmer but the upside room is likely, which in turn suggests an immediate pullback before the next leg towards the north.
GBP/USD: Hourly chart
Trend: Limited upside expected
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