GBP/USD Price Analysis: Struggle continues for shifting auction above 1.2200

• GBP/USD is facing stubborn barricades around 1.2200 as anxiety soars ahead of Fed Powell’s speech.
• The US Dollar Index (DXY) is aiming to extend its recovery to near the round-level resistance of 103.00.
• A bull cross, represented by the 20-and 50-period EMAs at 1.2040, adds to the upside filters.

The GBP/USD pair is continuously facing heat in attempts of breaking above the immediate resistance of 1.2200 in the Asian session. The market mood has turned sour as risk-sensitive assets like S&P500 futures have extended their losses in Tokyo. Also, the 10-year US Treasury yields have escalated to near 3.54%.

The US Dollar Index (DXY) is aiming to extend its recovery to near the round-level resistance of 103.00 as anxiety among investors is soaring ahead of the speech from Federal Reserve (Fed) chair Jerome Powell’s speech.

On a four-hour scale, the Cable has corrected marginally after delivering a break above the horizontal resistance plotted from November 24 high at 1.2153. Correction in cable seems healthy amid the absence of wider ticks, which might result in a resumption of an upside journey going ahead.

A bull cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at 1.2040, adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the upside momentum is still solid.

Should the asset break above Thursday’s high at 1.2210, Pound Sterling bulls will drive Cable towards December 5 high at 1.2344 followed by December 14 high at 1.2446.

Alternatively, a slippage below Thursday’s at 1.1873 will drag the major toward November 21 low around 1.1778. A breakdown of the latter will expose Cable for more downside towards the round-level support at 1.1700.

GBP/USD four-hour chart