GBP/USD Price Analysis: Bounces off immediate support line towards 1.2100

GBP/USD picks up bids to refresh intraday high, pares biggest daily loss in over a week.
One-week-old ascending trend line joins hidden bullish RSI divergence to favor Cable buyers.
200-EMA appears important challenge for bulls, six-week-old support line can lure bears past 1.2040.

Anil Panchal FXStreet

GBP/USD renews its intraday high near 1.2060 as it consolidates the biggest daily loss in more than a during early Thursday. In doing so, the Cable pair rebounds from a one-week-long ascending trend amid hidden bullish RSI divergence.

That said, the RSI (14) prints lower lows but the GBP/USD price prints higher lows, which in turn portrays a hidden bullish divergence and favors the quote’s latest bounce off the short-term key support line.

However, the 61.8% Fibonacci retracement level of the pair’s January 2023 up-moves, near 1.2075, acts as a validation point for the pair’s further upside.

Following that, the 200-bar Exponential Moving Average (EMA) level surrounding 1.2135 could challenge the GBP/USD bulls before directing them to the previous weekly high of near 1.2270.

In a case where the Cable pair remains firmer past 1.2270, January’s top around 1.2450 will be in the spotlight.

Alternatively, a downside break of the immediate support line, close to 1.2040 by the press time, could quickly recall the 1.2000 psychological magnet on the chart.

However, a descending support line from January 12, 2023, around 1.1900 at the latest, could probe the GBP/USD bears afterward.

GBP/USD: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2056
Today Daily Change	0.0013
Today Daily Change %	0.11%
Today daily open	1.2043

Trends
Daily SMA20	1.2151
Daily SMA50	1.2156
Daily SMA100	1.1923
Daily SMA200	1.1935

Levels
Previous Daily High	1.2135
Previous Daily Low	1.2035
Previous Weekly High	1.227
Previous Weekly Low	1.1915
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.2073
Daily Fibonacci 61.8%	1.2097
Daily Pivot Point S1	1.2007
Daily Pivot Point S2	1.197
Daily Pivot Point S3	1.1906
Daily Pivot Point R1	1.2108
Daily Pivot Point R2	1.2172
Daily Pivot Point R3	1.2209

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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