GBP/USD Price Analysis: Bulls run out of steam below 1.2390 resistance confluence

• GBP/USD retreats from the highest levels since early February, snaps two-day uptrend.
• Overbought RSI, bearish candlestick formation at multi-day top teases sellers.
• Weekly support line holds the key for bear’s entry.
• Previous support line from early March, two-week-long ascending trend line together challenges the bulls.

GBP/USD extends pullback from an eight-week high while printing mild losses near 1.2330 during early Wednesday. In doing so, the Cable pair prints the first daily loss in three.

Given the nearly overbought RSI (14), coupled with the bearish Doji candlestick at the multi-day top, the GBP/USD pair is likely to decline further.

However, an upward-sloping support line from the last Friday, around 1.2300 by the press time, restricts the short-term downside of the Cable pair.

Following that, the 50-SMA and the March 24 bottom, respectively near 1.2250 and 1.2190, could challenge the GBP/USD bears.

It’s worth noting that the 100-SMA level surrounding 1.2135 acts as the last defense of the GBP/USD buyers, a break of which won’t hesitate to prod the mid-month low of near the 1.2000 psychological magnet.

On the flip side, a convergence of the previous support line from March 08 and a fortnight-long ascending trend line, around 1.2390, challenges the GBP/USD buyers.

Even if the quote rises past 1.2390, multiple tops marked during late 2022 and early 2023, around 1.2445-50, appear a tough nut to crack for the Cable pair buyers.

To sum up, GBP/USD is likely bracing for a pullback but the reversal of the latest bullish trend is far from sight.

GBP/USD: Four-hour chart

Trend: Pullback expected