GBP/USD Price Analysis: Bulls retreat from fresh seven-month high near 1.2450 inside rising wedge
- GBP/USD pares intraday gains after refreshing multi-day top.
- Overbought RSI, six-week-old horizontal hurdle challenge Cable buyers.
- 21-SMA adds strength to 1.2365 key support, successful break of 1.2530 will defy rising wedge formation.
GBP/USD struggles to defend the 1.2400 threshold during a five-day uptrend to Monday’s European session, after rising to the highest levels since June 2022 earlier in the day.
In doing so, the Cable pair eases from the six-week-old horizontal resistance surrounding 1.2450 as the RSI (14) hits the overbought territory.
In addition to the quote’s repeated failures to cross the 1.2450 hurdle and the overbought RSI conditions, a 13-day-old rising wedge bearish chart formation also teases the GBP/USD bears around the multi-day top.
However, the 21-SMA level adds strength to the 1.2365 support, a break of which will confirm the rising wedge bearish pattern.
Following that, the 1.2100 and the 1.2000 round figures may entertain the GBP/USD bears during the theoretical south-run targeting the 1.1800 levels.
It should be noted that the sluggish MACD signals challenge the pair’s intraday momentum and hence restrict the bear’s entry.
On the contrary, successful trading beyond the 1.2450 hurdle isn’t an open invitation to the GBP/USD bulls as the stated wedge’s top line, near 1. 2530 by the press time, will act as an additional upside filter for the pair.
In a case where the GBP/USD remains firmer past 1.2530, a run-up towards May 2022 high near 1.2665 can’t be ruled out.
GBP/USD: Four-hour chart
Trend: Limited upside expected
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.
