GBP/USD Price Analysis: Clings to 200-HMA inside one-week-old rising channel

• GBP/USD pauses after three-day uptrend, stays inside bullish chart pattern.
• Strong RSI, bounce off 1.3750 favor buyers but the key Fibonacci retracements test further upside.

GBP/USD flirts with an intraday low of 1.3774 amid Thursday’s Asian session. The cable rose to the highest since April 07 during the three-day rise the previous day.

In doing so, the pair portrays a short-term ascending trend channel formation. However, the quote’s latest moves have been compressed by 200-HMA.

Given the strong RSI and the pair’s successful recovery from 1.3750, not to forget the bullish chart pattern, GBP/USD is likely to remain strong with a 50% Fibonacci retracement level of April 06-12 downside, around 1.3795, acting as an immediate hurdle.

Should sterling prices rise beyond the 1.3800 threshold, the upper line of the stated channel, near 1.3820, quickly followed by a 61.8% Fibonacci retracement level of 1.3825, will gain the market’s attention.

Alternatively, a downside break of 1.3750 will test the channel’s support line, around 1.3720.

However, any further weakness past-1.3720 may not hesitate to challenge the double bottoms, marked during late March and early April, near 1.3670.

GBP/USD hourly chart

Trend: Further upside expected