GBPUSD Price Analysis: Buyers stay hopeful whilst above 1.1750

• GBPUSD kicks off the week on the wrong footing amid resurgent US Dollar demand.
• Risk aversion weighs negatively on the Pound Sterling ahead of BoE-speak.
• GBPUSD buyers stay hopeful amid bullish RSI, eyes on 1.2128 rising wedge hurdle.

GBPUSD is staying pressured toward 1.1800 after facing rejection at the 1.1900 hurdle, as the US Dollar bulls flex their muscles amid the return of risk-off flows. Markets turn risk-averse following escalating tensions surrounding the renewed lockdowns in China amid surging covid cases. Investors flock to safety in the US Dollar in times of panic while moving away from risk-sensitive currencies such as the Pound Sterling.

Also, the Brtish Pound remains undermined by the UK Autumn Budget, which failed to impress amid recession warnings. Meanwhile, the GBPUSD pair also remains influenced by the commentaries from the US Federal Reserve (Fed) policymakers, who continue to push for higher terminal rates, helping the US Dollar stay afloat.

The focus now shifts toward the Bank of England (BoE) Deputy Governor Jon Cunliffe’s speech due later this Monday, as the United States economic docket lacks any high-tier data releases.

From a short-term technical perspective, GBPUSD is extending its consolidative phase between the 1.2000 and 1.1750 price range, awaiting a fresh impetus for a range breakout.

The bias remains skewed to the upside, as the 14-day Relative Strength Index (RSI) holds comfortable above the midline, despite the latest minor retreat.

Also, the bullish 21-Daily Moving Average (DMA) is looking to cut the horizontal 100DMA from below, adding credence to the bullish potential.

Buyers need to take out the intraday high at 1.1901 to revive the uptrend toward 1.1950 – the psychological level.

The next upside barrier is seen at the previous week’s high at 1.2028, above which a fresh rally toward the upper boundary of a five-week-old rising wedge, at 1.2128, will be challenged.

GBPUSD: Daily chart

On the flip side, Thursday’s low at 1.1762 will come to the immediate rescue of GBPUSD bulls, below which strong support awaits at around 1.1650, which is the confluence of the 100DMA and the lower boundary of the wedge formation.

Daily closing below the latter will validate the wedge breakdown, initiating a fresh downtrend toward 1.1000.

GBPUSD: Additional technical levels