GBP/USD Price Analysis: Acceptance above 100-DMA/1.3600 to set the stage for further gains

• GBP/USD attracted some dip-buying on Thursday and reversed an early slide to sub-1.3500 levels.
• The set-up favours bullish traders and supports prospects for an extension of the recent move up.
• Acceptance above 100-day SMA and the 1.3600 mark will reaffirm the near-term positive outlook.

The GBP/USD pair showed some resilience below the key 1.3500 psychological mark and has now recovered a major part of its intraday losses. The pair was last seen trading just a few pips below the daily high, around the 1.3540-30 region heading into the North American session.

From a technical perspective, the emergence of dip-buying near support marked by the 50% Fibonacci retracement level of the 1.3834-1.3161 downfall favours bullish traders. That said, the GBP/USD pair's inability to find acceptance above the 100-day SMA and the overnight rejection near the 1.3600 mark warrants some caution.

Meanwhile, oscillators on the daily chart are holding comfortably in the bullish territory and are still far from being in the overbought zone. This further validates the near-term constructive set-up, though it will be prudent to wait for a sustained strength beyond the 1.3600 mark before positioning for any further gains.

The GBP/USD pair might then aim to accelerate the momentum towards challenging a downward-sloping trend-line resistance, currently around the 1.3680 region. The mentioned hurdle extends from the July 2021 swing high, which if cleared decisively will set the stage for an extension of the recent strong move up from the vicinity of mid-1.3100s.

On the flip side, the 50% Fibo. level, around the 1.3500-1.3490 region, now seems to protect the immediate downside. This is followed by support near the 1.3460-55 region. Any subsequent decline might still be seen as a buying opportunity near the 1.3430-25 area (38.2% Fibo.), which should help limit the downside near the 1.3400 mark.

Failure to defend the mentioned support levels would negate the positive outlook and shift the bias in favour of bearish traders. The GBP/USD pair might then turn vulnerable to accelerate the downfall towards testing the 23.6% Fibo. support, around the 1.3320-15 region.

GBP/USD daily chart

Technical levels to watch