November 29 , 2022 1:57 AM ET
By:AnalysisWatch
GBP/USD extends its pullback from its daily high to 1.2000 as Cable traders consolidate their first daily gains in three days heading into Tuesday's London open.
In the process, price pulls back from a week-old horizontal resistance area ahead of the key event, Bank of England (BOE) Governor Andrew Bailey's hearing before the House of Lords Economic Affairs Committee.
However, it should be noted that the bullish signals from the MACD (moving average convergence and divergence) indicator and the positive RSI (relative strength index), which is at 14, give hope to the buyers of the GBP/USD pair.
However, the 200 HMA level around 1.1955, which challenges the intraday sellers of the pair ahead of the 61.8% Fibonacci retracement level of the November 21–24 uptrend, is at 1.1920.
In case the GBP/USD bears hold the reins beyond 1.1920, the 1.1900 threshold could serve as an intermediate stop during the likely downside run, targeting the previous weekly low of 1.1778.
On the other hand, the recovery moves will need to cross the above-mentioned immediate horizontal at 1.2025–1.30 to regain control.
Still, a convergence of the previous support line from November 21 and a downward trend line from last Thursday near 1.2100 will be a tough nut to crack for GBP/USD buyers.