GBP/USD Price Analysis: Bounces off key support line as bulls attack 1.1975 hurdle

• GBP/USD grinds near intraday high as it pokes immediate resistance line.
• Bearish MACD signals, 200-EMA challenge the recovery moves.
• Three-month-old ascending trend line restricts immediate downside as RSI shows receding bearish bias.

GBP/USD seesaws around the daily top as it struggles to carry the first daily gains in four near 1.1970 heading into Friday’s London open. In doing so, the Cable pair bounces off an upward-sloping support line from early January while approaching the descending trend line resistance stretched from Tuesday.

Given the quote’s repeated bounces off the stated key support line, around 1.1940 by the press time, coupled with the downbeat RSI (14) suggesting an easing bearish bias, the GBP/USD price is likely to overcome the immediate resistance line, close to 1.1975 by the press time.

However, the pair’s further upside appears limited unless the Cable pair stays below the 200-bar Exponential Moving Average (EMA), around 1.2095.

Following that, the 50% Fibonacci retracement level of the pair’s January month upside, near 1.2140, could act as an extra filter towards the north, a break of which could quickly propel the GBP/USD towards a horizontal area comprising levels marked since January 24, close to 1.2260-70.

On the flip side, a downside break of the ascending support line from January, close to 1.1960, could quickly fetch the GBP/USD towards the year 2023 low, marked in January, around 1.1840. That said, the 1.1920 level may act as an intermediate halt during the anticipated fall.

GBP/USD: Four-hour chart

Trend: Limited recovery expected