GBP/USD Price Analysis: Fades bounce off 100-SMA but bullish bias remains intact beyond 1.2400
- GBP/USD struggles to defend the first daily gains in three, retreats from intraday high.
- 100-SMA, one-week-old ascending trend line restricts immediate downside; bearish MACD signals prod Cable pair buyers.
- 200-SMA holds the gate for Sterling bear’s welcome.
GBP/USD portrays pre-Fed consolidation near 1.2490 as it retreats from its intraday high heading into Wednesday’s London open. Even so, the Cable pair remains firmer for the first day in three. That said, the quote’s latest pullback could be linked to the bearish MACD signals, apart from the cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements.
Also read: GBP/USD nears 1.2500 as doubts over Fed's role in banking turmoil weigh on US Dollar
However, the GBP/USD pair’s sustained trading beyond the 100-SMA and an ascending support line from April 21, respectively near 1.2460 and 1.2440, keeps the buyers hopeful.
Even if the Cable pair breaks the 1.2440 trend line support, the 200-SMA level of around the 1.2400 threshold can prod the GBP/USD bears.
In a case where the quote remains bearish past 1.2400, lows marked during April 17 and 10, close to 1.2355 and 1.2345, can act as the last defenses of the GBP/USD buyers before directing the pair towards the previous monthly low of near 1.2275.
On the contrary, GBP/USD recovery needs validation from the 1.2500 round figure to challenge a downward-sloping resistance line from the last Friday, close to 1.2520 at the latest.
Following that, a one-month-old ascending resistance line, near 1.2565, precedes the 1.2600 round figure to challenge the GBP/USD buyers targeting the one-year high of around 1.2665.
GBP/USD: Four-hour chart
Trend: Further upside expected