GBP/USD Price Analysis: Cable retreats towards resistance-turned-support near 1.2000

• GBP/USD pares the first weekly gain in three as traders brace for the key data/events.
• Upside break of one-month-old descending trend line, bullish MACD signals favor buyers.
• Bulls need clear break of 50-DMA to retake control; 200-DMA puts a floor under the Cable price.

GBP/USD bulls take a breather around 1.2030 during Monday’s initial Asian session, after posting the biggest weekly jump since mid-January.

In doing so, the Cable pair fails to extend the previous day’s upside break of the one-month-old descending resistance line, now support around 1.2020.

However, the Cable price is yet to drop back below the resistance-turned-support and the MACD signals are bullish too, which in turn keeps the GBP/USD buyers hopeful amid steady RSI. Adding strength to the upside bias is the quote’s successful trading beyond the 200-DMA.

In addition to the 200-DMA support of around 1.1900, an upward-sloping trend line from early January, close to 1.1940 at the latest, also acts as the short-term key support for the GBP/USD pair.

In a case where the GBP/USD remains bearish past 1.1900, lows marked during January 2023 and late November 2022, respectively near 1.1840 and 1.1760, will be in focus.

On the flip side, a daily closing beyond the 50-DMA hurdle surrounding 1.2140 could quickly propel the Cable pair toward the mid-February swing high surrounding 1.2270.

It’s worth noting, however, that the GBP/USD pair’s successful trading above 1.2270 enables the buyers to aim for the 2.5-month-old horizontal resistance area nearing 1.2445-50.

GBP/USD: Daily chart

Trend: Limited upside expected