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GBP/USD Price Analysis: Cable buyers approach 1.2400 resistance confluence

GBP/USD grinds close to intraday high, extends preceding day’s rebound from two-month low.
Convergence of 50-EMA, 13-day-old descending fashion line challenges Cable pair buyers.
Downbeat RSI underpins corrective leap off 100-EMA, ascending vogue line from ultimate November additionally tests Pound Sterling bears.
GBP/USD pares month-to-month losses, the first in three, round 1.2360 at some stage in early Monday as markets in the UK and the US are off for the Memorial Day holiday. In doing so, the Cable pair extends the preceding day’s recuperation from the final stages given that early April as the US Dollar retreats from a multi-day excessive in spite of the Biden-McCarthy deal on debt ceiling extension.

Also read: GBP/USD recovers from 1.2350 as USD Index drops amid US debt-ceiling elevate approval

That said, the beneath 50 ranges of the RSI line, positioned at 14, joins the 100-Exopnential Moving Average (EMA) to put a flooring below the Pound Sterling pair round the 1.2300 spherical figure.

Even so, the bearish MACD indicators and the 1.2400 resistance confluence, consisting of the 50-EMA and a two-week-old descending fashion line, avoid on the spot upside strikes of the GBP/USD pair.

Following that, the tops marked market at some point of late 2022 and in the final month, round 1.2440 and 1.2585 in that order, may want to act as the remaining protection of the Cable bears.

On the contrary, a downside ruin of the 100-EMA stage surrounding 1.2300 isn’t an open invitation to the Pound Sterling bears as an upward-sloping help line from November 2022, shut to 1.2230 may want to hinder similarly draw back of the pair.

Though, a clear draw back wreck of the 1.2230 aid won’t hesitate to venture the 1.2000 spherical discern on its way to meet early 2023 low surrounding 1.1840.

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