- GBP/USD once again started retreating from ascending channel resistance, around the 1.3400 mark.
- The set-up still favours bullish traders and supports prospects for the emergence of some dip-buying.
- A sustained break below the 1.3270 support is needed to invalidate the near-term positive outlook.
The GBP/USD pair continued with its struggle to reclaim the 1.3400 round-figure mark and witnessed a modest intraday pullback from the highest level since early September. The mentioned level marks the top boundary of a two-month-old ascending trend-channel resistance, which should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the overbought territory. This coupled with the fact that the pair has been attracting some dip-buying near the 1.3300-1.3290 region favours bullish traders and supports prospects for an eventual short-term bullish breakout.
Any subsequent fall is likely to find decent support near the 1.3270 horizontal level, which if broken decisively will negate the near-term constructive outlook. This, in turn, might prompt some technical selling and turn the GBP/USD pair vulnerable to accelerate the corrective slide further towards the 1.3200 round-figure mark.
On the flip side, bulls might still need to wait for some follow-through strength beyond the 1.3400 mark before positioning for any further appreciating move. The GBP/USD pair might then accelerate the positive move towards September monthly swing highs, around the 1.3480 region, en-route the key 1.3500 psychological mark.
GBP/USD daily chart