GBP/USD Price Analysis: Extends bounce off 50-SMA towards 1.2330 support-turned-resistance
- GBP/USD picks up bids to extend week-start recovery moves from short-term key support.
- 50-SMA, 61.8% Fibonacci retracement level challenge bears amid looming bull cross on the MACD.
- Rising wedge confirmation keeps Cable sellers hopeful unless the quote stays below 1.2330 previous support.
GBP/USD remains on the front foot as bulls attack the 1.2300 mark during Tuesday’s Asian session, following an upbeat start of the week.
In doing so, the Cable pair stretches the previous run-up from the 50-bar Simple Moving Average (SMA) and the 61.8% Fibonacci retracement level of the quote’s January-March downside. Adding strength to the upside bias could be the impending bulls cross on the MACD.
However, the previous week’s confirmation of the rising wedge bearish chart pattern keeps the Cable pair sellers hopeful unless the quote stays below the previous support line of the wedge, near 1.2330 by the press time.
Following that, the stated wedge’s top line near the 1.2400 round figure and multiple hurdles near the 1.2420-25 area can test the GBP/USD pair’s further upside ahead of directing it to the Year-To-Date (YTD) top surrounding 1.2450.
On the flip side, the 50-SMA and the aforementioned key Fibonacci ratio can challenge short-term GBP/USD bears around 1.2220 and 1.2200 respectively.
In a case where the Cable pair remains bearish past 1.2200, the 50% Fibonacci retracement and 200-SMA can test the downside moves around 1.2125 and 1.2080 in that order before directing bears towards the 1.2000 psychological magnet.
It should be noted that multiple supports near 1.1920 act as the last defense of the GBP/USD buyers.
GBP/USD: Four-hour chart
Trend: Further upside expected