GBP/USD Price Analysis: Less lucrative for bulls below 1.2970/75

• GBP/USD bulls catch a breather following its bounce off 1.2854.
• 50/200-bar EMA joins two-week-old falling trend line to offer strong resistance.
• MACD flirts with bears, 61.8% Fibonacci retracement acts as immediate support.

GBP/USD wavers around 1.2920/15 amid the early Tuesday morning in Asia. The pair recovered from the 61.8% Fibonacci retracement of September 23 to October 21 upside the previous day. However, a confluence of 50-bar and 200-bar EMA, coupled with a short-term descending trend line, becomes the key upside barrier to watch.

Considering the sluggish conditions of MACD, recent pullback moves are likely to fade below 50% Fibonacci retracement towards revisiting Monday’s low around 1.2855/50.

Though, any further downside will have to conquer the 1.2800 round-figure before targeting September’s low of 1.2675. During the fall, September 11 bottom surrounding 1.2760/65 can act as a buffer.

Meanwhile, the GBP/USD bulls will have to cross the 1.2925 immediate upside hurdle, comprising 50% Fibonacci retracement, to aim for the 1.2970/75 key resistance.

If at all the pair manages to cross 1.2975, it’s rally towards the October month’s peak near 1.3180 will be probed by a horizontal area close to 1.3080/85.

GBP/USD four-hour chart

Trend: Pullback expected