GBP/USD technical analysis: On the front-foot inside 4-day old rising channel
- GBP/USD is on the bids following short-term rising channel formation.
- The two-day long descending trend-line limits immediate upside.
- 200-hour EMA adds strength to the channel’s support.
Although a two-day-old falling trend-line is likely limiting the GBP/USD pair’s immediate upside, the pair continues to follow a short-term rising channel formation, which in turn portrays its strength. The quote seesaws around the intra-day high of 1.2368 while heading into the UK open on Wednesday.
An upside break beyond immediate resistance-line, at 1.2375, could propel prices to latest high surrounding 1.2385 and then to channel’s upper-line near 1.2410.
On the downside, 200-hour exponential moving average (EMA) level and the channel’s lower-line guards the pair’s declines around 1.2265/60, a break of which can quickly drag the quote to 1.2210 support.
During the pair’s further south-run below 1.2210, one-week-low around 1.2165 and 1.2100 will become sellers’ favorites.
GBP/USD hourly chart
Trend: bullish