- GBP/USD consolidates the biggest daily loss in a fortnight around weekly low.
- Ascending trend lines from January and last November precede 200-DMA to challenge bears.
- U-turn from 50-DMA, bearish MACD signals favor sellers.
GBP/USD stays defensive around 1.2030, bouncing off the weekly low, as it licks the previous day’s wounds during early Thursday.
In doing so, the Cable pair rebounds from a six-week-old support line after falling the most in a fortnight. The recovery moves, however, remain elusive considering the quote’s sustained U-turn from the 50-DMA and the bearish MACD signals.
It’s worth noting, though, that the ascending support lines from early January and mid-November 2022, respectively around 1.2000 and 1.1985 in that order, restrict the short-term downside of the GBP/USD pair.
Following that, the 200-DMA level of 1.1940 gains the major attention of the bears targeting the mid-November 2022 bottom around 1.1760. However, the previous monthly low surrounding 1.1840 could offer an intermediate halt during the fall.
Meanwhile, GBP/USD recovery remains elusive unless crossing the 50-DMA hurdle of near 1.2180.
In a case where the GBP/USD price remains firmer past 50-DMA, a one-month-old horizontal resistance near 1.2260 will be in focus as it holds the key for the Cable pair’s run-up toward the multiple tops marked since late 2022 around 1.2450.
Overall, GBP/USD is likely to remain depressed but the downside room appears limited.
GBP/USD: Daily chart
Trend: Limited downside expected
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