GBP/USD Price Analysis: Retreats inside weekly ascending channel, 1.3410 eyed

• GBP/USD consolidates gains following the monthly resistance breakout.
• Channel’s support, previous resistance offer tough nut to crack for the bears.
• 12-day-old horizontal hurdle on the bull’s radar, bears aim for fresh multi-month low.

GBP/USD eases to 1.3485, down 0.06% intraday heading into Thursday’s London open. The cable pair crossed the monthly hurdle the previous day but couldn’t overcome a one-week-old rising channel despite bullish MACD signals backing the upside momentum.

Hence, the latest pullback move may extend towards a convergence of the previous resistance line and lower line of the stated channel, around 1.3410. Though, any further weakness becomes less likely.

Should the GBP/USD bears dominate past 1.3410 support, the yearly low of 1.3353 and tops marked during late December 2019 near 1.3285 will gain the market’s attention.

On the contrary, recovery moves need validation from the 1.3500 threshold, also the upper line of the channel, to aim for the 50% Fibonacci retracement (Fibo.) level of late October to early November lows, near 1.3585.

Even so, a horizontal area comprising levels marked since November 02, around 1.3610, will challenge the GBP/USD buyers.

Overall, the cable is ready to consolidate the recent losses but await a trigger to recall the bulls.

GBP/USD: Four-hour chart

Trend: Further upside expected