GBP/USD Price Analysis: Jostles with multi-day-old resistance near 1.2400
- GBP/USD struggles to refresh five-week high as the key resistance line probe bulls.
- Descending trend line from late May 2022 restricts immediate upside.
- Convergence of 200-DMA, 2.5-month-long ascending support line appears tough nut to crack for bears.
- RSI conditions suggest limited room towards the north.
GBP/USD bulls take a breather around the multi-day high near 1.2400, retreating to 1.2390 by the press time, as a downward-slopping resistance line from May 2022 restricts the immediate upside of the Cable pair.
Adding strength to the bullish bias could be the quote’s successful trading beyond the 200-DMA, as well as the successful rebound from 1.1841.
However, the RSI conditions hint at the limited upside room, which in turn highlights the aforementioned resistance line near 1.2400 as the short-term key hurdle.
Even if the GBP/USD buyers manage to cross the 1.2400 resistance, an ascending resistance line from August 2022, close to 1.2490 at the latest, could act as an additional upside filter.
It’s worth noting that the Cable pair’s run-up beyond 1.2490 could help the buyers approach the May 2022 peak surrounding 1.2665.
Alternatively, pullback moves may initially aim for the August 2022 peak surrounding 1.2290 before witnessing multiple supports near 1.2120 and 1.2100.
Though, a convergence of the 200-DMA and an ascending trend line from the last November, near 1.1980, appears the key support to watch for the GBP/USD bears.
Should the quote breaks the 1.1980 support confluence, the odds of witnessing a fresh monthly low, currently around 1.1840, can’t be ruled out.
GBP/USD: Daily chart
Trend: Further upside expected