GBPUSD's rebound dribbles around a one-week high while extending Friday’s upside break of a descending resistance line from June 27, now support. The Cable pair’s recovery also takes clues from the firmer RSI and the bullish MACD signals to keep buyers hopeful. However, sustained trading beyond convergence of the 100-SMA and a downward sloping trend line from June 07, around 1.2030, becomes necessary for the bulls to retake control. Should the quote manage to stay firmer past 1.2030, a run-up towards the monthly high near 1.2175 can’t be ruled out. Though, multiple hurdles stay firer to challenge the quote’s upside past 1.2175, a break of which could propel the prices towards the mid-June high near 1.2400.
Meanwhile, a weekly support line, close to 1.1990, could challenge the GBPUSD sellers. Following that, the resistance-turned-support from late June and the recently flashed multi-month low, respectively around 1.1820 and 1.1775, will be in focus. It’s worth noting that the pair’s sustained downtrend below 1.1775 could make it vulnerable to slump towards March 2020 bottom close to 1.1400.
Overall, GBPUSD recovery pokes the key resistance confluence as traders brace for important UK data, starting with today’s UK employment report.