GBP/USD recovers from its intraday low but continues to be somewhat offered. Sellers are teased by a pullback from the three-day-old horizontal resistance amid an overbought RSI and an upcoming bear MACD cross. Important SMAs reinforce the negative filters, and a two-week-old resistance line presents buyer difficulty. Even if the currency pair has recovered from its intraday low ahead of Thursday’s London opening, it remains modestly offered at 1.2400.
This action reverses the Cable pair’s early Asian session drop from the double peaks around 1.2445-50 while the RSI (14) is almost overbought. The approaching bear cross on the MACD indicator is another tease for sellers.
However, the Cable pair’s immediate downside is constrained by an upward-sloping support line from November 09, which was at 1.2310 at the time of writing.
The 100-SMA level may then test the GBP/USD bears at the 1.2180 level after that. Notably, the 200-SMA level at 1.1910 serves as the last line of defense for the pair’s buyers.
To keep the GBP/USD buyers on board, recovery advances must overcome the double tops above 1.2445–50 and continue to hold stronger beyond a rising resistance line from December 01, near 1.2475.
The 1.2500 and 1.2600 round figures may test the upward momentum if the price continues stronger after 1.2475 before steering the bulls toward May’s top of 1.2666.
The GBP/USD bulls are losing speed, although the bears want confirmation from 1.2310.
GBP/USD 4-hour chart
