- GBP/USD struggles to extend the previous day’s recovery moves.
- A confluence of 200-HMA, a monthly resistance line becomes the key.
- 1.2120 can offer an intermediate halt during the fall to refresh monthly low.
Having stepped back from 100-HMA during Monday’s US session, GBP/USD trades near 1.2195 during Tuesday morning in Asia.
Considering the RSI’s pullback from overbought conditions as well as the key HMA, the Cable might extend the recent weakness towards 1.2120 immediate support.
However, the pair’s further downside depends upon how well it manages to extend the break of monthly low close to 1.2075.
Alternatively, a confluence of 200-HMA and a falling trend line from April 30, around 1.2275/80, can check the buyers beyond the 100-HMA level of 1.2200.
In a case where the bulls manage to dominate past-1.2280, 1.2300 and May 12 high surrounding 1.2375 will be on their radars.
GBP/USD hourly chart
Trend: Pullback expected
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