GBP/USD Price Analysis: Bulls challenge descending channel resistance, around 1.2960-65 region

GBP/USD reverses the BoE rate cut-led slide to one-week lows.
The technical set-up warrants some caution for bullish traders.

Haresh Menghani FXStreet

The GBP/USD pair managed to find decent support near the lower end of a short-term descending trend-channel and quickly reversed an early slide to one-week lows – triggered by the BoE's emergency rate cut.

The pair jumped to fresh session tops in the last hour, albeit lacked any strong follow-through. As the BoE Governor Mark Caney's press conference got underway, the pair held steady above mid-1.2900s.

Meanwhile, technical indicators on the 1-hourly chart are yet to catch up with the pair's strong intraday rally of over 100 pips and warrants some caution before positioning for any further near-term appreciating move.

Hence, any subsequent strength seems more likely to meet with some fresh supply near the mentioned trend-channel resistance, around the 1.2975 region, which is closely followed by the key 1.30 psychological mark.

The latter coincides with 100-hour SMA, which if cleared might be seen as a fresh trigger for intraday bullish traders and set the stage for additional gains, possibly back towards reclaiming the 1.3100 round-figure mark.

On the flip side, the 1.2900-1.2890 region now seems to act as strong immediate support, which if broken, might turn the pair vulnerable to head towards retesting the channel support near the 1.2815-10 area.

GBP/USD 1-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.2936
Today Daily Change	0.0025
Today Daily Change %	0.19
Today daily open	1.2911

Trends
Daily SMA20	1.2942
Daily SMA50	1.3008
Daily SMA100	1.2994
Daily SMA200	1.271

Levels
Previous Daily High	1.3129
Previous Daily Low	1.2882
Previous Weekly High	1.3049
Previous Weekly Low	1.2741
Previous Monthly High	1.3204
Previous Monthly Low	1.2726
Daily Fibonacci 38.2%	1.2976
Daily Fibonacci 61.8%	1.3035
Daily Pivot Point S1	1.2819
Daily Pivot Point S2	1.2727
Daily Pivot Point S3	1.2572
Daily Pivot Point R1	1.3066
Daily Pivot Point R2	1.3221
Daily Pivot Point R3	1.3313

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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