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  • GBP/USD witnessed a modest intraday pullback from the 1.2540-50 resistance zone.
  • Mixed oscillators on hourly/daily charts haven’t been supportive of a firm direction.
  • A sustained break below 1.2440 support area is needed to confirm any further slide.

The GBP/USD pair failed to capitalize on its mid-European session uptick, instead met with some fresh supply near the 1.2440-50 region. This marks the 38.2% Fibonacci level of the 102076-1.2813 positive move and should now act as a key pivotal point for short-term traders.

The pair refreshed daily lows, around the 1.2460 region in the last hour, albeit has still managed to hold above 50% Fibo. level. Given the overnight bullish breakout above a two-week-old ascending trend-line, the intraday slide might still be seen as a buying opportunity.

Meanwhile, technical indicators on hourly charts have been losing positive momentum and are yet to catch up with this week’s goodish on the daily chart. Hence, a subsequent weakness below the 1.2440 support (50% Fibo. level) might shift the bias back in favour of bearish traders.

The pair might then turn vulnerable to break below the 1.2400 round-figure mark and accelerate the fall further towards challenging weekly lows, around the 1.2335 zone. Some follow-through selling might now set the stage for the resumption of the recent bearish trajectory.

On the flip side, any meaningful move up now seems to confront resistance near the 1.2500 psychological mark, above which bulls are likely to aim to retest the 1.2540-50 supply zone. A convincing breakthrough should pave the way for a further appreciating move for the pair.

GBP/USD 4-hourly chart

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Technical levels to watch