GBP/USD Price Analysis: Drops back towards 21-DMA support around 1.2500

• GBP/USD extends the previous day’s pullback from weekly top.
• Failure to stay beyond two-month-old resistance line, receding bullish bias of MACD to favor bears.
• Multiple hurdles to test sellers before May’s low surrounding 1.2150.

GBP/USD remains pressured towards an intraday low around 1.2520 as bears keep reins heading into Thursday’s London open.

In doing so, the cable pair extends the previous day’s losses amid the receding bullish bias of the MACD.

Also keeping the pair sellers is the multiple failures to cross a downward sloping trend line from mid-April.

However, the pair sellers need validation from the 21-DMA level of 1.2500 to retake control.

Following that, the 23.6% Fibonacci retracement level of the April-May downturn, near 1.2390, will precede the 1.2330 and 1.2260 support levels to challenge GBP/USD bears before offering them light to aim for the yearly low of 1.2155.

Meanwhile, a daily closing beyond the two-month-old resistance line, close to 1.2555, could aim for May’s high around 1.2665.

It should be noted that the GBP/USD pair’s successful run-up beyond 1.2665 enables the bulls to target an early April swing low near 1.2980.

GBP/USD: Daily chart

Trend: Further weakness expected