GBP/USD Price Analysis: Recovery remains elusive below 1.2405 immediate hurdle

GBP/USD picks up bids to snap four-day downtrend, bounces off one-week low.
10-DMA, looming bear cross on MACD challenges Cable pair buyers.
12-day-old ascending support line holds the key to further downside.

Anil Panchal FXStreet

GBP/USD prints the first daily gains in five around 1.2390 as full markets return on Tuesday. In doing so, the Cable pair bounces off the lowest levels in a week.

That said, a two-week-old ascending trend line, around 1.2355 by the press time, triggered the GBP/USD pair’s rebound the previous day.

However, the quote’s sustained trading below the 10-DMA hurdle and an impending bear cross on the MACD keeps GBP/USD sellers hopeful. Adding strength to the downside bias is the RSI (14) line’s retreat from the overbought territory.

Hence, the quote’s latest rebound remains elusive unless it stays below the 10-DMA hurdle of 1.2405.

Even if the GBP/USD buyers manage to cross the 1.2405 resistance, a four-month-old horizontal line and previous support trend line stretched from mid-March, respectively near 1.2445 and 1.2510, could challenge the pair’s further upside.

It’s worth noting that the latest multi-month high of 1.2525, marked the last week, also acts as an extra upside filter to watch for Cable buyers.

On the flip side, the aforementioned support line stretched from March 24, close to 1.2355, restricts the immediate downside of the GBP/USD pair, a break of which could quickly drag the quote towards 1.2300 and then to February’s high of near 1.2270.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.239
Today Daily Change	-0.0028
Today Daily Change %	-0.23%
Today daily open	1.2418

Trends
Daily SMA20	1.2293
Daily SMA50	1.2156
Daily SMA100	1.2159
Daily SMA200	1.1902

Levels
Previous Daily High	1.2456
Previous Daily Low	1.2389
Previous Weekly High	1.2525
Previous Weekly Low	1.2275
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2415
Daily Fibonacci 61.8%	1.243
Daily Pivot Point S1	1.2386
Daily Pivot Point S2	1.2354
Daily Pivot Point S3	1.2319
Daily Pivot Point R1	1.2453
Daily Pivot Point R2	1.2488
Daily Pivot Point R3	1.252

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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