GBP/USD Price Analysis: Bounces off immediate support line towards 1.2100

• GBP/USD picks up bids to refresh intraday high, pares biggest daily loss in over a week.
• One-week-old ascending trend line joins hidden bullish RSI divergence to favor Cable buyers.
• 200-EMA appears important challenge for bulls, six-week-old support line can lure bears past 1.2040.

GBP/USD renews its intraday high near 1.2060 as it consolidates the biggest daily loss in more than a during early Thursday. In doing so, the Cable pair rebounds from a one-week-long ascending trend amid hidden bullish RSI divergence.

That said, the RSI (14) prints lower lows but the GBP/USD price prints higher lows, which in turn portrays a hidden bullish divergence and favors the quote’s latest bounce off the short-term key support line.

However, the 61.8% Fibonacci retracement level of the pair’s January 2023 up-moves, near 1.2075, acts as a validation point for the pair’s further upside.

Following that, the 200-bar Exponential Moving Average (EMA) level surrounding 1.2135 could challenge the GBP/USD bulls before directing them to the previous weekly high of near 1.2270.

In a case where the Cable pair remains firmer past 1.2270, January’s top around 1.2450 will be in the spotlight.

Alternatively, a downside break of the immediate support line, close to 1.2040 by the press time, could quickly recall the 1.2000 psychological magnet on the chart.

However, a descending support line from January 12, 2023, around 1.1900 at the latest, could probe the GBP/USD bears afterward.

GBP/USD: Four-hour chart

Trend: Further recovery expected