- GBP/USD continues to find decent support near the 1.2400 round-figure mark.
- Bulls are likely to wait for a move beyond 100-day SMA, around 1.2525 area.
The GBP/USD pair quickly recovered around 100 pips from weekly lows and now seemed headed back towards the top end of its daily trading range.
The pair once again attracted some dip-buying near the 1.2400 round-figure mark, which should now act as a key pivotal point for short-term traders.
Any subsequent move up might confront stiff resistance near the 1.2525 region (100-hour SMA), which if cleared might be seen as a fresh trigger for bulls.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining some positive traction on hourly charts.
The set-up supports prospects for an eventual break through the mentioned barrier and a possible move towards the 1.2575 intermediate hurdle en-route the 1.2600 mark.
Some follow-through buying has the potential to lift the pair back towards the weekly swing high, around mid-1.2600s, representing the very important 200-day SMA.
On the flip side, bears are likely to wait for a sustained break below the 1.2400 mark, below which the pair is likely to accelerate the slide further towards the 1.2340 support area.
The downward trajectory could further get extended even below the 1.2300 mark, towards testing the next major support near the 1.2230-25 horizontal zone.
GBP/USD 1-hourly chart
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Technical levels to watch
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