GBPUSD picks up bids to extend the previous day’s rebound from a six-week-old rising support line as traders prepare for the UK jobs report and the US Consumer Price Index (CPI) data on early Tuesday. In doing so, the Cable pair also justifies a recovery in the RSI (14) line. However, a fortnight-old descending trend channel joins the sluggish MACD signals to challenge buyers. Should the quote manage to cross the 1.2580 immediate hurdle, its run-up toward a downward-sloping resistance line from late November, near 1.2690, will be imminent. Following that, the previous monthly high of near 1.2735 and a seven-week-long rising resistance line, close to 1.2870, will be in the spotlight.
Meanwhile, a downside break of the aforementioned support line, around 1.2540 by the press time, isn’t an open invitation to the GBPUSD sellers as the bottom line of the previously stated channel and the 200-SMA, respectively near 1.2470 and 1.2420, will challenge the fall. Also acting as the downside filter is the mid-November swing low surrounding 1.2370, a break of which will make the Pound Sterling vulnerable to dropping toward the November 10 trough near 1.2185.
Overall, GBPUSD is likely to reverse the previous week’s losses unless the UK/US data recall the pair sellers.
