GBP/USD Price Analysis: Stays defensive above 1.2000 as bears fear bumpy road ahead

• GBP/USD struggles for clear directions after two-day downtrend.
• Convergence of 200-DMA, 100-DMA and three-month-old ascending trend line offers strong support.
• Bearish MACD signals, steady RSI suggests more downside.
• Recovery remains elusive below three-week-long descending resistance line.

GBP/USD picks up bids to reverse the early Asia losses, despite failing to gain traction above 1.2000. That said, the Cable pair seesaws around 1.2020-25 during Friday morning, following a two-day downtrend.

The quote’s latest weakness could be linked to the bear’s fears of strong support ahead as the 200-DMA and 100-DMA join an upward-sloping support line from late November 2022 to challenge the pair’s further downside near the 1.1940-20 area.

It’s worth noting, however, that the bearish MACD signals and the steady RSI (14) keep the GBP/USD sellers hopeful.

As a result, the quote’s further downside appears to have limited room unless breaking 1.1920 key support. In that case, a slump to the previous monthly low of 1.1840 becomes imminent before highlighting the mid-November 2022 swing low near 1.1760.

Should the GBP/USD bears keep the reins past 1.1760, the last October’s high of 1.1645 may return to the chart.

On the contrary, a three-week-old descending resistance line restricts immediate Cable moves near 1.2140, a break of which could quickly propel the pair towards the mid-February swing high of near 1.2270.

Following that, multiple tops marked around 1.2450 will be crucial to watch for the GBP/USD buyers.

GBP/USD: Daily chart

Trend: Limited downside expected