GBP/USD Price Analysis: Pullback remains elusive beyond 1.2410 support
- GBP/USD treads water after reversing from 10-month high.
- Previously key horizontal resistance, bullish MACD signals favor Cable buyers.
- Three-week-old ascending trend line acts as additional downside filter.
- Multiple resistances to test GBP/USD bulls during recovery, offering a bumpy ride ahead.
GBP/USD struggles for clear directions as it makes rounds to 1.2460-55 during the mid-Asian session on Thursday.
The Cable pair reversed from its highest levels since June 2022 the previous day to print the first daily loss in three amid an overbought RSI (14). However, a four-month-old previous resistance line joins the bullish MACD signals to challenge the GBP/USD bears of late.
Even if the quote drops below the resistance-turned-support surrounding 1.2450-45, an upward-sloping support line from mid-March, around 1.2410, can act as the last defense of the GBP/USD buyers.
Following that, February 14 swing high around 1.2270 may prod the GBP/USD bears before directing them to the Year-To-Date low marked in March around 1.1800.
Alternatively, recovery moves need to cross the latest peak of 1.2525 to convince the Cable buyers to return to the table.
Following that, the 61.8% Fibonacci Expansion (FE) of its moves between November 2022 and March 2023, close to 1.2605, may challenge the GBP/USD bulls.
In a case where the pair remains firmer past 1.2605, the May 2022 high of around 1.2665-70 can challenge the upside momentum.
Overall, GBP/USD remains on the bull’s even if it trades sluggishly of late.
GBP/USD: Daily chart
Trend: Further upside expected