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  • GBP/USD extends recovery from 50% Fibonacci retracement level.
  • Bullish MACD indicates pair’s another run-up to the short-term key resistance line.

GBP/USD holds on to recovery gains from 50% Fibonacci retracement level while taking the bids to 1.2885 during the early Asian session on Friday.

The pair’s bounce from 50% Fibonacci retracement of late-October advances gains supports from bullish MACD, which in turn favors pair’s another attempt to clear three-week-old falling trend line, near 1.2930.

However, the pair’s successful break of 1.2930 is less likely to stop unless meeting the 1.3000 mark.

In a case where sellers ignore a bullish signal from the 12-bar Moving Average Convergence and Divergence (MACD) indicator, 100-bar Simple Moving Average (SMA) near 1.2865 could act as immediate support ahead of 38.2% and 50% Fibonacci retracement levels of 1.2823 and 1.2764 respectively.

It should also be noted that pair’s declines below 1.2764 could strength bears to target 61.8% Fibonacci retracement level of 1.2707 and mid-October highs near 1.2650.

GBP/USD 4-hour chart

Trend: Further recovery looks likely