- GBP/USD struggled to build on the goodish intraday bounce from sub-1.2300 levels.
- The formation of a double-top supports prospects for an eventual bearish breakdown.
- Bears are likely to aim towards challenging 1.2200 mark en-route April monthly lows.
The GBP/USD pair failed to capitalize on its intraday positive move and has now retreated over 50 pips from daily highs near the 1.2375-80 region. Despite the pullback, the pair has still managed to hold above the 1.2300 round-figure mark and the 1.2285-80 support zone.
The mentioned region coincides with an ascending trend-line extending from late March and should now act as a key pivotal point for short-term traders. Given the double-top formation near the very important 200-day SMA, the set-up seems tilted in favour of bearish traders.
Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias but have struggled to gain any meaningful negative momentum. This, in turn, warrants some caution before positioning for any further near-term depreciating move for the cable.
A convincing breakthrough the double-top neckline support near the 1.2285-80 region will be seen as a fresh trigger for bearish traders and accelerate the fall towards the 1.2200 round-figure mark en-route April monthly swing lows support near the 1.2165 region.
On the flip side, any meaningful positive move beyond mid-1.2300s might still be seen as a selling opportunity and remain capped near the 1.2400-1.2420 supply zone. That said, some follow-through buying should assist the pair to aim back towards the key 1.2500 psychological mark.
GBP/USD daily chart
Technical levels to watch