GBP/USD Price Analysis: Corrective pullback needs validation from 1.3230
- GBP/USD struggles to extend the bounce off 16-month low.
- Previous support from late January, two-week-old resistance line challenge recovery moves.
- Early October 2020 peak restricts downside ahead of the 1.3000 threshold.
- MACD conditions do favor further upside towards monthly high.
GBP/USD seesaws around 1.3180 after rising the most in a week amid market’s anxiety during Thursday’s Asian session.
The cable pair recovered from the lowest levels since November 2020 the previous day, backed by upbeat MACD signals.
However, a convergence of the six-week-old previous support line and a downward sloping trend line from February 23 offers a tough nut to crack for the GBP/USD bulls around 1.3230.
Should the quote rise past 1.3230, an upward rally targeting the monthly high of 1.3437 can’t be ruled out. However, the 200-SMA level of 1.3457 will challenge the quote’s additional upside.
Meanwhile, the 1.3100 round figure may act as immediate support during the further declines, ahead of the latest low near 1.3080.
It’s worth noting that the early October 2020 peak also adds strength to the 1.3080 support, a break of which will direct the GBP/USD bears towards the 1.3000 psychological magnet.
GBP/USD: Four-hour chart
Trend: Further upside expected