GBP/USD Price Analysis: Extends bounce off 200-HMA to pierce immediate hurdle above 1.2200
|- GBP/USD stretches recovery from 200-HMA, grinds near intraday high of late.
- 100-HMA, previous support line from early March challenge bulls.
- Upbeat oscillators, failure to break the key moving average keep buyers hopeful.
GBP/USD prints mild gains around mid-1.2200s as it defends the previous day’s rebound from the key moving average during early Monday’s sluggish trading.
In doing so, the Cable pair crosses a two-day-old descending resistance line, now immediate support around 1.2240.
It’s worth noting that the bullish MACD signals and gradually recovering RSI (14), not overbought also underpin the latest rebound in the Cable pair, which in turn suggests the quote’s further advances.
However, the 100-Hour Moving Average (HMA) restricts the immediate upside of the GBP/USD price to around the 1.2260 level.
Following that, the previous support line from March 08, close to 1.2320 at the latest, may act as the last defense of the GBP/USD pair sellers, a break of which opens the gate for the pair’s run-up towards the multiple tops marked during December 2022 and January 2023 near 1.2445-50.
On the contrary, pullback moves need to remain below the 1.2240 resistance-turned-support to lure intraday sellers.
Even so, the 200-HMA level of 1.2200 and the latest swing low of around 1.2190 can challenge the GBP/USD bears before giving them control.
Overall, GBP/USD is likely to grind higher but the upside momentum need validation from 1.2320.
GBP/USD: Hourly chart
Trend: Further upside expcted
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.