GBP/USD Price Analysis: Struggles to reclaim auction above 1.2000

The GBP/USD pair is attempting to surpass the psychological resistance of 1.2000 in the Asian session. The Cable is displaying topsy-turvy moves in a range of 1.1960-1.2000 as investors are awaiting the release of United States ISM Manufacturing PMI data for fresh impetus.

Meanwhile, the US Dollar Index (DXY) is displaying rangebound moves around 104.20. S&P500 futures are displaying marginal gains after a sell-off on Tuesday. The 10-year US Treasury yields have dropped further to 3.73%.

Earlier, the Cable delivered a breaking of the consolidation formed in a range of 1.2000-1.2123 formed on a four-hour scale. The pair is attempting to regain an auction profile above the psychological resistance of 1.2000.

The major has comfortably established below the 200-period Exponential Moving Average (EMA) at 1.2024, which indicates that the long-term trend is bearish now. Also, the 50-EMA at 1.2054 is acting as a major barricade for the Pound Sterling.

It is worth noting that the Relative Strength Index (RSI) (14) managed to rebound firmly after dropping inside the bearish range of 20.00-40.00, which indicates that the context of value-buying is still present.

For a downside move, the Cable needs to break down the round-level support at 1.1900 forcefully, which will drag the major toward November 11 high at 1.1855. A slippage below the latter will expose Cable to November 21 low of around 1.1778.

Alternatively, a surprise break above Friday’s high at 1.2100 will drive the Cable toward December 21 high at 1.2147 followed by December 21 high around 1.2200.

GBP/USD four-hour chart