GBP/USD Price Analysis: Cable pares losses on the way to 200-DMA support

• GBP/USD picks up bids to refresh intraday high, snaps three-day downtrend to recover from one-month low.
• Nearly oversold RSI triggers corrective bounce but bears stay hopeful.
• Clear downside break of previous key support lines, bearish MACD signals favor sellers.
• Cable buyers remain confused unless crossing 1.2450 hurdle.

GBP/USD consolidates recent losses while picking up bids to 1.2050 during early Tuesday morning in Europe, printing the first daily gains in four. In doing so, the Cable pair justifies the nearly oversold RSI (14) as traders await fresh clues.

Even so, the quote holds on to the previous week’s downside break of the key support lines from October and September 2022, now resistance around 1.2150 and 1.2275 in that order.

Also keeping the Cable bears hopeful is the clear U-turn from the two-month-old horizontal resistance area surrounding 1.2450.

As a result, the GBP/USD rebound remains elusive unless it crosses the 1.2450 resistance while the 1.2150 appears the nearby hurdle for the intraday buyers to cross.

In a case where the Cable pair stays firmer past 1.2450, the May 2022 high near 1.2665 could lure the bulls.

On the flip side, the 1.2000 psychological magnet puts a floor under the GBP/USD prices ahead of the 200-DMA support of 1.1950.

Following that, the previous monthly low near 1.1840 and the September high around 1.1735 could challenge the pair sellers before giving them control.

GBP/USD: Daily chart

Trend: Further downside expected