GBP/USD Price Analysis: Bulls struggle to find acceptance above descending trend-line

• GBP/USD gains traction for the sixth successive day and climbs to a two-week high.
• Failure to find acceptance above a descending trend-line warrants caution for bulls.
• Positive technical indicators on the daily chart support prospects for further gains.

The GBP/USD pair prolongs its recent recovery move from an all-time low and gains traction for the sixth successive day on Tuesday. The momentum lifts spot prices to a two-week high, though falter near the 1.1430 region.

From a technical perspective, bulls seem to struggle to find acceptance above a downward-sloping trend-line resistance extending from the August monthly swing high. Technical indicators, meanwhile, have just started gaining positive traction on the daily chart and support prospects for further gains.

That said, it will still be prudent to wait for a sustained move beyond the daily high, around the 1.1430 area before positioning for an extension of the appreciating move. The GBP/USD pair might then comb to the 1.1500 psychological mark and extend the move towards the 1.1530-1.1540 supply zone.

Some follow-through buying will suggest that the GBP/USD pair has formed a near-term bottom. This, in turn, should pave the way for a move towards the 1.1600 round-figure mark en route to the 1.1670 hurdle. The latter coincides with the 50-day SMA and should act as the next key pivotal point.

On the flip side, any meaningful pullback could attract some buyers near the 1.1300 round-figure mark and find decent support around the 1.1280-1.1260 region. Failure to defend the said support will shift the bias back in favour of bears and prompt aggressive technical selling around the GBP/USD pair.

The subsequent downfall has the potential to drag spot prices below the 1.1200 round-figure mark, towards testing the next relevant support near the 1.1160-1.1155 region. The downward trajectory could further get extended towards the 1.1100-1.1085 zone, or the weekly low touched on Monday.

GBP/USD daily chart

Key levels to watch