GBP/USD Price Analysis: Multiple bounces off 1.2000 tease buyers

• GBP/USD picks up bids to portray the third U-turn from 1.2000.
• RSI, MACD both suggest that bears are running out steam.
• Bulls need validation from weekly resistance line, 200-HMA.

GBP/USD picks up bids to reverse the initial losses around 1.2030 heading into Wednesday’s London open. In doing so, the Cable pair marks the third rebound from the 1.2000 psychological magnet while probing the bearish bias portrayed on Tuesday.

Although one-week-old horizontal support near 1.2000 restricts the immediate downside of the GBP/USD pair, recovery remains elusive unless the quote crosses a downward-sloping resistance line from December 19, close to 1.2090 by the press time.

That said, the 1.2050 mark and the 100-HMA level surrounding 1.2070 restrict immediate recovery moves of the Cable pair.

It’s worth noting that the GBP/USD pair’s upside past 1.2070 will need validation from the 200-HMA hurdle, close to 1.2140 at the latest, a break of which could give control to the buyers.

Meanwhile, a clear downside break of the 1.2000 round figure precedes the monthly low of 1.1992 to restrict the short-term GBP/USD declines.

Following that, the late November swing low of 1.1900 will gain the market’s attention as the pair’s sustained trading below the same could put the sellers in the driver’s seat.

Overall, GBP/USD is likely to consolidate recent losses but the recovery remains doubtful below 1.2140.

GBP/USD: Hourly chart

Trend: Limited recovery expected