GBP/USD Price Analysis: Bulls attack key Fibonacci retracement level above 1.3700

• GBP/USD steps back from 61.8% Fibonacci retracement of late July upside.
• Bullish MACD favors further recovery moves but 200-SMA, monthly resistance line challenge becomes the key hurdle to watch.

GBP/USD bulls take a breather around 1.3720, after the biggest daily jump in six weeks, amid the initial Asia session on Tuesday. In doing so, the cable pair battles a 61.8% Fibonacci retracement level of July 20–30 upside.

Given the bullish MACD signals and the pair’s U-turn from July lows, GBP/USD buyers are likely to overcome the 1.3730 immediate hurdle.

However, the bullish moves may remain less convincing until staying below a convergence of 200-SMA and a descending trend line from July 30, near 1.3815.

It’s worth noting that the 50% Fibonacci retracement level of 1.3778 may entertain GBP/USD buyers past 1.3730.

Meanwhile, pullback moves will have to break the 1.3700 threshold to recall the short-term sellers.

Following that, 1.3630 and the 1.3600 round figure may challenge GBP/USD bears before directing them to the previous month’s low close to 1.3570.

GBP/USD: Four-hour chart

Trend: Further recovery expected