GBP/USD Price Analysis: Fades Brexit deal-inspired upside momentum near 1. 2050

GBP/USD remains sidelined after rising the most in seven weeks.
UK PM Sunak manages to strike all-around acceptability with latest Brexit deal.
Sluggish oscillators probe traders around previous resistance line.
Key DMAs, support line challenge Cable bears despite snapping four-month uptrend in February.

Anil Panchal FXStreet

GBP/USD struggles to extend the Brexit deal-induced gains around 1.2050-60 during early Tuesday. Even so, the Cable pair defends the previous day’s rebound from the key technical levels while also keeping the upside break of a short-term key resistance line, now support.

It’s worth noting that the sluggish MACD and RSI conditions challenge the Cable pair buyers after the quote rose the most on a daily since early January. That said, the GBP/USD remains on the way to posting the first monthly loss in five.

On a different page, optimism surrounding UK Prime Minister Rishi Sunak’s Brexit deal keeps the GBP/USD buyers hopeful as most of the hard Brexiteers have so far praised the initial deal for the Northern Ireland Protocol (NIP) that needs UK Parliamentary approval.

Also read: UK PM Sunak: Found a way to end the uncertainty for Northern Ireland

Hence, recent inaction in the market pushes back the bearish bias surrounding the GBP/USD as it defends the previous day’s fundamental, as well as technical, catalysts that recalled the bulls on Monday.

As a result, the Cable pair is on the way to poking a downward-sloping resistance line from February 02, close to 1.2110 by the press time, unless it drops below the resistance-turned-support line near 1.2040.

Even if the quote drops below 1.2040, the 100-DMA and 200-DMA, respectively near 1.1960 and 1.1920, could challenge the GBP/USD bears. Also acting as a downside filter is an upward-sloping support line from early January, close to 1.1930 by the press time.

On the flip side, a successful break of the 1.2110 resistance line could propel the GBP/USD price toward the mid-February high surrounding 1.2270. However, the double tops marked near 1.2445-50 appear a tough nut to crack for the bulls afterward.

GBP/USD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2058
Today Daily Change	0.0000
Today Daily Change %	0.00%
Today daily open	1.2058

Trends
Daily SMA20	1.2094
Daily SMA50	1.2147
Daily SMA100	1.1951
Daily SMA200	1.1928

Levels
Previous Daily High	1.2066
Previous Daily Low	1.1922
Previous Weekly High	1.2148
Previous Weekly Low	1.1928
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.2011
Daily Fibonacci 61.8%	1.1977
Daily Pivot Point S1	1.1965
Daily Pivot Point S2	1.1872
Daily Pivot Point S3	1.1821
Daily Pivot Point R1	1.2109
Daily Pivot Point R2	1.2159
Daily Pivot Point R3	1.2252

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.

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