GBP/USD Price Analysis: Extends bounce off 200-HMA to pierce immediate hurdle above 1.2200
- GBP/USD stretches recovery from 200-HMA, grinds near intraday high of late.
- 100-HMA, previous support line from early March challenge bulls.
- Upbeat oscillators, failure to break the key moving average keep buyers hopeful.
GBP/USD prints mild gains around mid-1.2200s as it defends the previous day’s rebound from the key moving average during early Monday’s sluggish trading.
In doing so, the Cable pair crosses a two-day-old descending resistance line, now immediate support around 1.2240.
It’s worth noting that the bullish MACD signals and gradually recovering RSI (14), not overbought also underpin the latest rebound in the Cable pair, which in turn suggests the quote’s further advances.
However, the 100-Hour Moving Average (HMA) restricts the immediate upside of the GBP/USD price to around the 1.2260 level.
Following that, the previous support line from March 08, close to 1.2320 at the latest, may act as the last defense of the GBP/USD pair sellers, a break of which opens the gate for the pair’s run-up towards the multiple tops marked during December 2022 and January 2023 near 1.2445-50.
On the contrary, pullback moves need to remain below the 1.2240 resistance-turned-support to lure intraday sellers.
Even so, the 200-HMA level of 1.2200 and the latest swing low of around 1.2190 can challenge the GBP/USD bears before giving them control.
Overall, GBP/USD is likely to grind higher but the upside momentum need validation from 1.2320.
GBP/USD: Hourly chart
Trend: Further upside expcted
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.
