GBP/USD Price Analysis: Sellers grapple with the pullback from 1.2370 hurdle
- GBP/USD seesaws in a tight range after reversing from a two-month high.
- One-month-old ascending resistance line challenges bulls despite firmer oscillators.
- Bears need validation from two-week-long support line before taking control.
GBP/USD stays defensive above 1.2300 amid early Thursday’s Asian session, making rounds to a 15-pip trading range in the last, as bears struggle to keep the reins after the Cable pair reversed from a two-month high the previous day.
That said, the Cable pair took a U-turn from a multi-day top the previous day after an upward-sloping resistance line from late February challenged the bulls. However, the bullish MACD signals and an absence of the overbought RSI (14) seem to have tamed the bearish bias.
Adding strength to the upside bias is the pair’s ability to trade beyond the two-week-old upward-sloping support line and the key moving averages.
With this, the GBP/USD buyers are likely to again challenge the aforementioned resistance line, around 1.2370 by the press time.
In that case, a horizontal area comprising multiple tops marked since mid-December 2022, around 1.2445-50, gains major attention.
However, likely overbought conditions of the RSI around then could challenge the Cable bulls afterward, if not then the GBP/USD price won’t hesitate to challenge the May 2022 high of around 1.2670.
On the flip side, a two-week-long ascending support line, close to 1.2290 by the press time, restricts the immediate downside of the pair, a break of which highlights the 10-DMA support of 1.2270.
It should be noted, however, that a clear downside break of the 10-DMA can direct GBP/USD towards the 50-DMA, close to 1.2150 by the press time.
GBP/USD: Daily chart
Trend: Further upside expected