GBP/USD Price Analysis: Braces for inverse H&S as bulls defend 1.2100

• GBP/USD remains sidelined as it portrays a bullish chart formation.
• Convergence of 200-HMA, 61.8% Fibonacci retracement appears a tough nut to crack for bulls.
• Downside below 1.2090 rejects inverse H&S process, buyers can aim for mid-June top on pattern confirmation.

GBP/USD holds onto the previous day’s breakout of a weekly resistance despite taking rounds to 1.2100 during Tuesday’s initial Asian session. In doing so, the Cable pair teases an inverse Head and Shoulders (H&S) formation.

However, buyers need to cross the 1.2155 neckline hurdle to gain the market’s acceptance. Even so, the 200-HMA and the 61.8% Fibonacci retracement level of June 27 to July 01 downside, around 1.2200, appears a tough nut to crack for the bulls.

Given the steady RSI and the GBP/USD pair’s successful trading beyond the previous resistance line, now support around 1.2090, the bullish bias is likely to prevail.

That said, a sustained run-up beyond 1.2200 could open the door for the pair’s rally towards the theoretical target of the H&S confirmation, around 1.2350. Though, tops marked during June 27 and 16, respectively around 1.2330 and 1.2410, could act as additional filters to the north.

Meanwhile, pullback remains elusive until the quote stays beyond 1.2090 resistance-turned-support.

Following that, the 1.2000 psychological magnet can probe the GBP/USD bears before directing them to the latest swing low surrounding 1.1975 and the yearly bottom marked in June near 1.1933.

GBP/USD: Hourly chart

Trend: Further recovery expected