GBP/USD Price Analysis: Clings to strong intraday recovery gains, still well below session tops

• GBP/USD staged a solid 450 pips intraday recovery from multi-decade lows.
• The strong intraday positive momentum faltered ahead of the 1.1900 mark.

The GBP/USD pair witnessed a dramatic intraday turnaround on Friday and recovered over 450 pips from the 1.1400 neighbourhood or the lowest level since 1985. Extremely oversold conditions on short/medium-term charts turned out to be a key trigger behind the pair’s short-covering rally amid some aggressive USD long-unwinding.

The positive momentum, however, struggled to find acceptance above the 23.6% Fibonacci level of the 1.3200-1.1412 recent slump and failed ahead of the 1.1900 mark. The mentioned handle coincides with 100-hour SMA, which should now act as a key pivotal point for traders and set the stage for the pair’s next leg of a directional move.

Meanwhile, oscillators on hourly charts have been gaining some traction but remained in the oversold territory on the daily chart, supporting prospects for further recovery. Despite the supporting factors, bulls are likely to wait for some strong follow-through buying beyond the 1.1900 mark before positioning for any further near-term recovery.

On the flip side, the 1.1750 region now seems to have emerged as immediate support and is closely followed by the 1.1700 round-figure mark. Failure to defend the mentioned support levels might turn the pair vulnerable and accelerate the slide back towards testing levels just below the key 1.1500 psychological mark.

GBP/USD 1-hourly chart

Technical levels to watch