- 21-hour exponential moving average (EMA) questions the GBP/USD pair’s latest pullback.
- A downside break of 1.2244/41 will confirm short-term rising wedge bearish formation.
Following its U-turn from 21-hour EMA, GBP/USD takes the bids to 1.2285 while heading into Wednesday’s United Kingdom session opening.
Prices are now heading towards 1.2300 round figure prior to targeting a monthly top of 1.2310. It should, however, be noted that pair’s rise beyond 1.2310 will be challenged by a three-day-old rising trend-line, close to 1.2320.
Meanwhile, pair’s declines below 21-hour EMA level near 1.2270 can fetch the quote to 1.2244/41 confluence including rising wedge’s support and 23.6% Fibonacci retracement of pair’s run-up since August 11.
If at all sellers sneak in around 1.2240, 200-hour EMA level of 1.2200 and August 20 high near 1.2105 will become their favorites.
GBP/USD hourly chart
Trend: bullish
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