GBP/USD: 200-hour SMA flirts with a falling trend channel confluence obstacle

The GBP/USD pair recovered around 60 pips from an intraday low of 1.2185 and updated daily highs during the middle of the European session. The rise did not have a strong following, with the bulls now seeking to extend momentum beyond the 200-hour moving average.

The daily swing high, around the 1.2245 area, coincides with the upper end of a declining channel formation on the 1-hour chart. This is followed by the 100-day SMA resistance, currently near the 1.2270 region, which if approved could be considered a new trigger for intraday bullish traders.

Meanwhile, the technical indicators on the 4-hour charts have not yet gained much traction and have retained their bearish bias on the daily chart. The line-up requires some caution before placing further bullish bets and positioning yourself for further valuation moves.

Therefore, it is wise to expect a strength above 1.2300, above which the pair is likely to extend this week’s strong rebound below 1.2100 and aim to test the bidding zone 1.2340-45. Some follow-up purchases may further raise the pair to claim the 1.2400 level.

Technical Levels

 S1 1.2212
 S2 1.2184
 S3 1.2146

 R1 1.2278
 R2 1.2316
 R3 1.2344​