GBP/USD Price Analysis: Advocates further volatility towards the north
- GBP/USD grinds higher around intraday top, remains inactive on a daily format.
- Bullish megaphone, steady RSI joins upside break of one-week-old descending trend line to favor the Cable pair buyers.
- Sellers need validation from 1.1650-25 support area to retake control.
GBP/USD remains inactive around 1.1890, despite crossing a weekly hurdle the previous day, as the Cable pair traders await fresh clues from the British PMIs during early Wednesday.
It’s worth noting that the steady prints of the Relative Strength Index (RSI) placed at 14 and the bullish megaphone chart formation keeps the GBP/USD buyers hopeful.
That said, the quote’s further upside hinges on a clear break of the 1.1900 threshold, which in turn could direct the pair towards the weekly high surrounding 1.1955.
However, the aforementioned megaphone’s upper line and the monthly peak, respectively near 1.2015 and 1.2030, could challenge the GBP/USD bulls afterward.
Alternatively, the pair sellers should wait for a clear downside break of the previous resistance line from November 15, close to 1.1865 by the press time.
Following that, the trend-widening pattern’s lower line, around 1.1800, could challenge the GBP/USD pair’s further downside, a break of which will highlight an upwards-loping support line from November 03, adjacent to 1.1775 at the latest.
It’s worth noting, however, that multiple levels marked since October 26 join the 100-SMA to highlight 1.1650-25 region as a tough nut to crack for the GBP/USD bears.
GBP/USD: Four-hour chart
Trend: Further upside expected