GBP/USD Price Analysis: Cable buyers remain cautious below tested 1.2470 resistance
- GBP/USD struggles to defend latest gains, prints mild losses while snapping two-day uptrend.
- Clear downside break of one-month-old previous support line joins sluggish MACD signals, steady RSI to tease sellers.
- 100-EMA, ascending support line from early April challenge Cable bears.
GBP/USD remains pressured around 1.2430, printing minor losses amid Thursday’s Asian session after a two-day uptrend. In doing so, the Cable pair stays on the bear’s radar amid multiple failures to cross the previous support line stretched from late March.
Adding strength to the downside bias could be the sluggish MACD signals and steady RSI (14) line.
However, the 100-SMA and a one-month-old resistance line, respectively near 1.2400 and 1.2370, restrict the GBP/USD pair’s short-term downside.
It’s worth noting that a short-term horizontal line around 1.2350 holds the key to the GBP/USD pair’s slump toward the monthly low of 1.2275.
Following that, the late March swing low near 1.2190 and the 1.2000 round figure will gain the market’s attention.
On the flip side, a clear upside break of the 1.2470 support-turned-resistance will be enough for the GBP/USD buyers to retake control.
In that case, the 1.2500 round figure and the monthly high of near 1.2550 should gain major attention before directing the Cable pair buyers towards the May 2022 high of near 1.2665.
Overall, GBP/USD is likely to remain downbeat unless crossing 1.2470.
GBP/USD: Four-hour chart
Trend: Further downside 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.
