GBP/USD Price Analysis: Three-week-old rising channel defends buyers above 1.2100 ahead of BOE

• GBP/USD sellers struggle to keep reins inside a short-term bullish chart formation.
• Channel’s support, previous resistance from February restrict immediate downside.
• Buyers could remain cautious below 1.2667, a 200-pip upside appears smoother.
• Multiple supports, firmer oscillators keep buyers hopeful ahead of the BOE.

GBP/USD probes bears around 1.2145, after a two-day downtrend, as traders await the key Bank of England (BOE) Monetary Policy decisions during the Asian session on “Super Thursday”. In doing so, the Cable pair picks up bids inside a three-week-old ascending trend channel.

Also read: BOE Rate Decision Preview: Bailey to follow Powell’s footsteps with a dovish hike

That said, the quote’s latest rebound from the stated channel’s support line joins firmer RSI (14) and the bullish MACD signals to keep GBP/USD buyers hopeful.

With this, the recovery moves can aim for the multiple highs marked during late June, around 1.2330 ahead of challenging the aforementioned channel’s resistance line, at 1.2345 by the press time.

Should the GBP/USD bulls cross the 1.2345 hurdle, the June 16 top near 1.2405-10 and the 100-DMA level surrounding 1.2490 could challenge the advances before highlighting May’s peak of 1.2666.

Meanwhile, pullback moves need validation from the channel’s support line, at 1.2120 by the press time, a break of which could direct the quote towards the previous resistance line from February, near 1.2100.

Also acting as short-term key support is the convergence of the 21-DMA and the resistance-turned-support line from June 16, close to 1.2030-25.

Furthermore, the GBP/USD pair’s downside past 1.2025 may need back-up from the 1.2000 breakdown to convince bears.

GBP/USD: Daily chart

Trend: Recovery expected