GBP/USD Price Analysis: Retreats from monthly high below 1.2200 but buyers remain hopeful

• GBP/USD eases from one-month high but holds onto post-Fed breakout of the key technical hurdles.
• Bullish MACD signals also favor buyers to aim for 50-DMA.
• Previous resistance line holds the key to seller’s entry.

GBP/USD bulls take a breather around a one-month high during Thursday’s Asian session, paring the Fed-inspired rally to 1.2186 by easing to 1.2150.

Even so, the Cable pair buyers keep the reins as it holds onto the previous day’s upside break of the key resistance line from April, now support around 1.2070.

Also favoring the bulls is the pair’s sustained trading above 21-DMA and a two-week-old support line, as well as firmer signals from the MACD.

It’s worth noting that the quote’s weakness below the resistance-turned-support line, around 1.2070, won’t be considered a welcome sign for the bears as a convergence of the 21-DMA and a fortnight-old support line, near 1.2000, will be a tough nut to crack for the GBP/USD sellers.

If the quote remains weak past 1.2000, the odds of witnessing a gradual south-run toward the yearly low near 1.1760 can’t be ruled out.

Alternatively, the 50-DMA level near 1.2230 guards the quote’s immediate upside ahead of a descending resistance line from late March, close to 1.2410 at the latest.

In a case where the GBP/USD bulls keep reins past 1.2410, it can reverse the four-month-old downtrend while targeting May’s peak of 1.2666 as the next hurdle.

GBP/USD: Daily chart

Trend: Further upside expected