- GBP/USD breaks above 200-bar SMA to attack 1.2400 mark.
- 61.8% Fibonacci retracement adds to the resistance beyond the channel’s upper line.
- Multiple lows marked on May 22 could offer rests after the channel’s downside break.
GBP/USD gains 0.45% on a day while taking the bids near 1.2400 amid Monday’s Asian session. The Cable seems to cheer the sustained break of 200-bar SMA amid bullish MACD.
Though, the resistance line of an ascending trend channel since May 17, near 1.2415 now, could question the bulls.
If buyers keep the reins beyond 1.2415, 61.8% of Fibonacci retracement of the pair’s fall from April 14 to May 17, around 1.2430, could raise upside barriers for the quote.
Meanwhile, a downside break below 200-bar SMA level of 1.2340 could push the GBP/USD prices back to the said channel’s support line of 1.2240.
If at all the sellers dominate past-1.2240, May 22 lows near 1.2160 could become their favorite.
GBP/USD four-hour chart
Trend: Pullback expected
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