GBP/USD Price Analysis: Cable recovery approaches 1.2760 hurdle on US Dollar’s retreat

• GBP/USD grinds near intraday high as it snaps two-day losing streak.
• Three-week-old ascending trend line restricts immediate downside amid price-positive RSI conditions.
• Bearish MACD signals, descending trend line from June 16 guard immediate upside.

GBP/USD keeps the late Friday’s corrective bounce off the short-term key support line near 1.2730 amid early Monday in London. In doing so, the Pound Sterling cheers the broad US Dollar retreat during sluggish markets with mixed catalysts. However, the technical details are upside and hence buyers approach a short-term key resistance on their way to refresh the yearly top marked earlier in the month.

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That said, the RSI (14) line’s rebound from the oversold territory finally hits the 50.0 level and hence suggests the buyer’s acceptance of the Cable pair’s latest U-turn from an upward-sloping support line from June 05, close to 1.2700 by the press time.

As a result, the GBP/USD bulls are on their way to prod a one-week-old descending resistance line, near 1.2760.

However, downbeat MACD signals and hopes of the US Dollar’s recovery, amid hawkish Fed signals, challenge the Pound Sterling buyers afterward.

In a case where the quote rises past 1.2760, the 1.2800 round figure and the monthly high of near 1.2850, also the highest levels since April 2022, will be in the spotlight.

Meanwhile, a downside break of the 1.2700 support, comprising the previously mentioned rising trend line, isn’t an open invitation to the GBP/USD bears as a horizontal area comprising multiple levels marked since early May, near 1.2640-50, becomes crucial to watch before welcoming the sellers.

Also acting as a short-term downside filter is the 100-SMA and an upward-sloping support line from May 25, respectively near 1.2625 and 1.2500.

GBP/USD: Four-hour chart

Trend: Further recovery expected