Title: GBP/USD Price Analysis: Pullback remains elusive unless breaking 1.1970 support

Jul 26, 2022 1:38:58 AM E.T

By analysiswatch

GBP/USD pared intraday losses as bulls took a breather around the monthly high heading into Tuesday's London open.

Even so, the cable pair is printing a four-day uptrend, remaining within a 2.5-month bearish channel formation, having recently weakened to 1.2065.

Despite the pair's latest pullback, it retains the previous day's upside break of the 21-DMA around the 1.2000 threshold.

GBP/USD buyers also retain the hope of bullish MACD signals.

However, the quote's further advance is aiming for the upper line of the indicated channel, at the latest near 1.2125, which looks like a tough nut to crack for GBP/USD bulls. The 50-DMA at 1.2240 also appears as key resistance.

At the same time, moves back could initially target the 21-DMA level near 1.2000. However, sellers remain out of the game until the quote remains beyond the July 14 upside support line at 1.1970 at press time.

Should GBP/USD prices fall below 1.1970, the chances of witnessing a further decline towards the monthly low near 1.1760 are not ruled out.

It is worth mentioning that the pair's weakness past 1.1760 will be triggered by the lower line of the aforementioned bearish channel, near 1.1625.