GBP/USD Price Analysis: Further upside hinges on 1.2130 breakout

• GBP/USD struggles to defend the previous day’s bounce off seven-week low.
• Sustained break of three-week-old descending trend line, 100-SMA favor buyers.
• Bullish MACD signals, firmer RSI also underpin bullish bias.
• Sellers need validation from 1.2050 to retake control.

GBP/USD bulls flirt with the 1.2100 threshold during Monday’s Asian session, after posting the biggest daily jump in five weeks on Friday. Even so, the Cable pair remains on the bull’s radar as it defends the previous day’s technical breakouts.

Not only the upside break of a descending resistance line from December 19, as well as the 100-SMA, but the bullish MACD signals and firmer RSI (14) also keep the GBP/USD buyers hopeful.

However, the 200-SMA level surrounding 1.2125 challenges the quote’s immediate advances.

Following that, the 1.2200 round figure and the late December swing high near 1.2245 could act as additional upside filters before directing previous toward the previous monthly top of 1.2446.

It’s worth noting, that December 05 swing high near 1.2345 acts as an extra filter towards the north.

On the flip side, the 100-SMA and the resistance-turned-support line, respectively around 1.2075 and 1.2050, put a short-term floor under the GBP/USD prices.

In a case where the quote drops below 1.2050, a slump toward 1.2000 becomes imminent.

Though, the latest swing low around 1.1840 could challenge the GBP/USD bears afterward.

GBP/USD: Four-hour chart

Trend: Further upside expected