GBP/USD Price Analysis: Intraday rally falters near descending trend-line/200-hour SMA confluence

• GBP/USD got a strong boost following the release of the UK monthly jobs report.
• The positive momentum stalled near descending trend-line/200-hour SMA hurdle.
• Sustained USD buying interest acted as a headwind for the pair amid Brexit woes.

The GBP/USD pair shot to four-day highs in reaction to upbeat UK employment details, albeit retreated a few pips thereafter. The pair was last seen trading around mid-1.3400s, still up over 0.30% for the day.

The latest UK jobs report supported the case for an immediate 15bps rate hike by the Bank of England in December and provided lifted the British pound. That said, sustained US dollar buying capped gains for the GBP/USD pair amid worries that Britain will trigger Article 16 and suspend parts of the Northern Ireland Protocol.

From a technical perspective, the intraday positive move stalled just ahead of a confluence hurdle, comprising of 200-hour SMA and a downward sloping trend-line. The mentioned barrier, currently around the 1.3775-80 region, should act as a key pivotal point and determine the next leg of a directional move for the GBP/USD pair.

Meanwhile, technical indicators on hourly charts have been gaining strong positive traction but are still holding deep in the bearish territory on the daily chart. This, in turn, warrants some caution and makes it prudent to wait for a sustained break through the confluence resistance before positioning for any further appreciating move.

The GBP/USD pair might then aim to surpass the key 1.3500 psychological mark and accelerate the momentum further towards the next relevant resistance near the 1.3560-65 supply zone. Some follow-through buying should allow bulls to make a fresh attempt to conquer the 1.3600 round-figure mark.

On the flip side, any meaningful pullback might continue to find decent support near the 1.3400 mark, which if broken would expose YTD lows, around the 1.3355-50 region touched last Friday. This would be seen as a fresh trigger for bearish traders and turn the GBP/USD pair vulnerable to resume over two-weeks-old downward trajectory.

GBP/USD 1-hour chart

Technical levels to watch