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  • GBP/USD stalled its post-BoE positive move near the 1.2420 horizontal zone.
  • The near-term technical set-up still seems tilted in favour of bearish traders.

The GBP/USD pair failed to capitalize on its goodish intraday recovery move from two-week lows and witnessed a modest pullback from the 1.2420 region. The pair’s inability to move back above an important support breakpoint – now turned resistance – suggests persistent selling bias at higher levels.

This comes on the back of a double-top formation near the very important 200-day SMA and suggests that the near-term bearish bias might still be far from over. Meanwhile, technical indicators on the daily chart are yet to confirm the negative outlook and warrant some caution before placing any aggressive bearish bets.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below the 1.2300 mark, which will set the stage for a further depreciating move. The pair then might accelerate the fall towards the 1.2250-45 intermediate support before eventually dropping to test its next major support near the 1.2200 mark.

Conversely, a sustained strength above the mentioned resistance-turned-support might prompt some short-covering move and lift the pair towards the key 1.2500 psychological mark.

GBP/USD daily chart

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Techincal levels to watch