GBP/USD PRICE ANALYSIS: PULLBACK REMAINS ELUSIVE UNLESS BREAKING 1.1970 SUPPORT
- GBP/USD retreats from monthly high during the four-day uptrend.
- Sustained trading beyond 21-DMA, weekly support line keeps buyers hopeful.
- Downward sloping resistance line from mid-April lures buyers.
GBP/USD pares intraday losses as bulls take a breather around the monthly peak heading into Tuesday’s London open. Even so, the Cable pair prints four-day uptrend while staying inside a 2.5-month-old bearish channel formation, recently easing to 1.2065.
Despite the pair’s latest pullback, it keeps the previous day’s upside break of the 21-DMA surrounding the 1.2000 threshold. Also keeping the GBP/USD buyers hopeful are the bullish MACD signals.
That said, the quote’s further advances aim for the stated channel’s upper line, near 1.2125 at the latest, appears a tough nut to crack for the GBP/USD bulls. Also acting as the key resistance is the 50-DMA hurdle of 1.2240.
Meanwhile, pullback moves may initially aim for the 21-DMA level near 1.2000. However, the sellers remain off the table until the quote stays beyond an upward sloping support line from July 14, at 1.1970 by the press time.
In a case where the GBP/USD prices drop below 1.1970, the odds of witnessing further downside towards the monthly low near 1.1760 can’t be ruled out.
It’s worth mentioning that the pair’s weakness past 1.1760 will be challenged by the lower line of the aforementioned bearish channel, close to 1.1625.