- GBP/USD resumes bids to renew intraday high, breaks three-day downtrend to rebound from one-month low.
- Nearly oversold RSI triggers a corrective bounce, but bears remain hopeful.
- Clear break below previous key support lines, MACD bearish signals favor sellers.
- Pound buyers remain confused unless they cross the 1.2450 barrier.
GBP/USD consolidates recent losses as bids rally towards 1.2050 early Tuesday in Europe, posting the first daily gains in four days. In doing so, the pair justifies the nearly oversold RSI (14) as traders await further clues.
Still, the pair is holding on to the previous week’s breakout of key October and September 2022 support lines, now resistances around 1.2150 and 1.2275, in that order.
Also keeping pound bears hopeful is the clear U-turn of the horizontal resistance zone around 1.2450 two months ago.
Consequently, a GBP/USD bounce remains elusive unless it crosses the 1.2450 resistance, while 1.2150 appears to be the nearest hurdle for intraday buyers.
Should the pair hold firm beyond 1.450, the May 2022 high near 1.2665 could attract bulls.
On the flip side, the psychological magnet at 1.2000 bottoms out GBP/USD prices ahead of the 200 DMA support at 1.1950.
Next, the previous monthly low near 1.1840 and the September high around 1.1735 could challenge the sellers of the pair before giving them control.
GBP/USD: daily chart
Trend: More falls expected
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
