GBP/USD Price Analysis: 1.2970 guards immediate upside

• GBP/USD consolidates losses from 1.3025 while bouncing off 1.2936.
• Confluence of 200-HMA, two-day-old ascending trend line challenges the pullback moves.
• 1.2863 can offer immediate support ahead of the monthly low.

GBP/USD picks up bids near 1.2950 as traders in Tokyo begin Tuesday’s work. The pair broke an ascending trend line from Friday the previous day while also declining below 200-HMA.

With the RSI conditions not flashing any overbought/oversold signals, the quote can extend the latest recovery moves towards the key 1.2970 resistance confluence.

However, any further upside will be probed by the 1.3000 and Monday’s top near 1.3025. Also acting as the resistance is the one-week-long descending trend line, currently near 1.3035.

Meanwhile, the pair’s downside break of the latest low near 1.2935 can direct GBP/USD bears toward the 1.2900 threshold ahead of making them combat the 1.2863 horizontal support comprising lows marked on Wednesday and Friday.

If at all the sellers remain dominant past-1.2863, the monthly low near 1.2820 will become their favorite.

GBP/USD hourly chart

Trend: Bearish