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  • GBP/USD pulls back after failing to clear eight-week-old horizontal resistance.
  • 100-day EMA will reward the breakout, 23.6% Fibonacci retracement and 21-day EMA seem nearby supports.

Having taken U-turn from a multi-week-old horizontal-area including July month extremes, GBP/USD trades near 1.2345 while heading into the UK open on Tuesday.

With this, 23.6% Fibonacci retracement of May-September declines, at 1.2250 and 21-day exponential moving average (EMA) near 1.2235, could grab sellers’ attention.

If bears dominate below 1.2235, early-August high near 1.2210 and 1.2100 could offer intermediate halts to the downward trajectory targeting 1.2000 round-figure.

Alternatively, an upside clearance of 1.2385 opens the door for a further rise to 100-day EMA level of 1.2478 and then to 50% Fibonacci retracement level around 1.2570.

GBP/USD daily chart

Trend:  pullback expected