- GBP/USD once again showed some resilience below mid-1.2700s and regained traction.
- The uptick lacked any strong follow-through and struggled to sustain above 1.2800 mark
The GBP/USD pair continued showing some resilience below mid-1.2700s and managed to regain some positive traction on Tuesday. The uptick lacked any strong follow-through beyond 50-hour SMA and once again failed to find acceptance above the 1.2800 round-figure mark.
Meanwhile, technical indicators on the 1-hourly chart have been steadily recovering from the bearish territory and support prospects for some intraday gains. However, oscillators on 4-hourly/daily chart maintained their bearish bias and warrant some caution for bullish traders.
This coupled with the fact that the pair last week confirmed a break below a two-month-old descending trend-channel the near-term technical set-up still seems tilted in favour of bearish traders. Hence, any attempted positive move might still be seen as a selling opportunity.
Sustained weakness below the 1.2740-30 horizontal zone will reaffirm the bearish outlook, which might turn the pair vulnerable to break below the 1.2700 round-figure mark and accelerate the slide further towards its next major support near the 1.2630-25 region.
Conversely, some follow-through buying beyond the 1.2800-1.2810 region has the potential to lift the cross back towards the overnight swing highs, around mid-1.2800s. The momentum could further get extended towards the next hurdle near the 1.2930 supply zone.
GBP/USD 1-hourly chart
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Technical levels to watch
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