GBP/USD consolidates losses from the previous day and picks up late bids.
Recovery moves within the short-term rising channel are hampered by a sluggish MACD.
Bears will need to hold channel support as the 200-SMA adds to the upside filters.
During Friday’s subdued Asian session, the GBP/USD hit an intraday high of 1.3835, up 0.05 percent.
As a result of its bounce off a two-week-old horizontal support zone surrounding the 1.3800 mark, the cable pair pares Thursday’s losses.
Nonetheless, MACD conditions aren’t conducive to the pair’s continued rise, implying a fresh pullback from recent resistances, especially 1.3875-80 and the 1.3900 round figure.
Should the price fail to reverse from 1.3900, the upper line of an ascending trend channel from June 30 near 1.3920, as well as the 200-SMA level near 1.3955, will be critical resistance levels to watch.
Meanwhile, if the 1.3800 nearby support is broken to the downside, GBP/USD sellers will turn their attention to the channel’s support near 1.3780.
It’s worth noting that a sustained breach of 1.3780 will confirm the pair’s bearish trend towards the lows seen around 1.3670 in March and April. The monthly low of 1.3731 may be used to test the pair’s bears for fall.
Expect a sluggish recovery./n
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