GBP/USD Price Analysis: Bulls travel through a bumpy road past 1.2000
- GBP/USD picks up bids to reverse the week-start pullback.
- Ascending trend line from the last Thursday restricts immediate downside, 100-SMA guards further advances.
- A clear break of two-month-old support line becomes necessary for the Cable bears to retake control.
- MACD conditions, repeated bounces off short-term support line keep buyers hopeful.
GBP/USD prints mild gains around 1.2030 as it pares the week-start losses during early Tuesday’s trading.
In doing so, the Cable pair marks another bounce off the ascending support line from the last Thursday. Additionally luring the buyers are the bullish MACD signals.
However, the 100-SMA level surrounding 1.2040 caps the GBP/USD pair’s immediate upside.
Following that, a downward-sloping resistance line from early February, near 1.2050, appears the key for the pair buyers to cross if they wish to keep the reins and aim for the 200-SMA hurdle surrounding 1.2150.
It should be noted that the mid-February highs near 1.2270 could lure the GBP/USD bulls past 1.2150.
On the flip side, a clear break of the immediate support line, near 1.2010 by the press time, needs validation from the 1.2000 psychological magnet to convince the Cable bears.
Even so, an upward-sloping support line from early January, close to 1.1940 by the press time, becomes crucial for the GBP/USD bears to conquer to retake control.
Should the quote successfully breaks the 1.1940 support, the odds of witnessing a slump to the yearly low of 1.1841 can’t be ruled out.
GBP/USD: Four-hour chart
Trend: Further 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.
