GBP/USD Price Analysis: Cable prods 1.2360 immediate hurdle in search of further recovery
- GBP/USD defends recovery from two-month low as Sterling Pound buyers attack 1.2360 resistance confluence.
- 100-HMA, three-week-old descending trend line restricts immediate upside ahead of 200-HMA.
- Cable sellers need validation from three-day-long rising support line.
- Steady RSI, mildly firmer MACD signals underpin bullish bias.
GBP/USD grinds higher past 1.2350, making rounds to 1.2360 amid early Tuesday in Asia, as it struggles to extend the previous two-day rebound from the lowest levels since April.
In doing so, the Cable pair pokes a convergence of the 100-Hour Moving Average (HMA) and a falling trend line from May 10.
Given the pair’s sustained observance of the three-day-old rising trend line and above 50 RSI (14) line, not overbought, not to forget slightly bullish MACD signals, the Pound Sterling buyers are likely to keep the reins.
Hence, the quote is expected to cross the immediate upside hurdle of 1.2360, which in turn will allow the GBP/USD buyers to aim for the 200-HMA level surrounding the 1.2400 round figure.
However, tops marked during May 24 and 16, close to 1.2470 and 1.2550 in that order, can challenge the pair’s further upside.
On the contrary, the aforementioned support line from the last Thursday, near 1.2340 by the press time, restricts the immediate downside of the GBP/USD pair.
Following that, the monthly low surrounding the 1.2300 round figure could return to the chart.
It’s worth noting that the GBP/USD pair’s downside past 1.2300 will need validation from February’s high surrounding 1.2270 to welcome the bears.
GBP/USD: Hourly 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.
