GBP/USD Price Analysis: Bears flirt with fortnight-old support below 1.2300

• GBP/USD stays defensive after reversing from 21-day EMA.
• Impending bull cross on MACD, hesitance in breaking the support line tease buyers.
• Bears need validation from 1.2160 before targeting the yearly low.

GBP/USD struggles for clear directions as it seesaws around two-week-long support surrounding 1.2260 heading into Tuesday’s London open.

The cable pair portrayed a Doji candlestick the previous day while reversing from the 21-day EMA, which in turn suggested a reversal of the last week’s rebound.

However, a looming bullish signal on the MACD joins a fortnight-old support line to challenge the pair bears.

Even if the quote drops below 1.2260 immediate support, multiple levels surrounding 1.2180-60 marked since June 16 could challenge the pair’s further weakness.

In a case where the GBP/USD bears manage to conquer the 1.2160 support, they can rush towards the yearly bottom near 1.1930-35, also the lowest levels since March 2020.

Meanwhile, recovery remains elusive until the Cable pair remains below the 21-day EMA level surrounding 1.2330.

Should the quote rises past 1.2330, the 61.8% Fibonacci retracement of the May-June fall and a downward sloping trend line from late May, respectively around 1.2390 and 1.2470, will gain the market’s attention.

Overall, GBP/USD remains on the bear’s radar but short-term corrections can’t be ruled out.

GBP/USD: Daily chart

Trend: Corrective pullback expected