- The GBP/USD pair once again struggled to make it through the 1.2170-75 horizontal resistance and quickly retreated around 50-pips in the last hour, refreshing session lows.
- Despite the pullback, the pair has managed to hold above the 1.2100 handle – coinciding with 200-hour SMA – which should now act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started gaining negative traction on the 1-hourly chart, supporting prospects for the resumption of the pair’s well-established bearish trend.
However, bullish oscillators on the 4-hourly chart warrant some caution for aggressive traders and make it prudent to wait for a convincing break through the mentioned handle before positioning for any further near-term depreciating move.
Below the said support, the pair might turn vulnerable to accelerate the slide back towards the 1.2060-50 intermediate support before eventually breaking below the key 1.20 psychological mark to test its next support near the 1.1980 region.
On the flip side, the 1.2170-75 region might continue to act as an immediate barrier and is closely followed by the 1.2200 round figure mark, which if cleared might negate the negative outlook and set the stage for a near-term short-covering bounce.
GBP/USD 1-hourly chart