GBP/USD technical analysis: Recovery below 1.2400 stays doubtful

• GBP/USD bounces off 200-bar SMA amid oversold RSI.
• 100-bar SMA, six-day long falling trend-line restricts near-term upside.

Not only 50% Fibonacci retracement of current month upside but 200-bar simple moving average (SMA) also triggers the GBP/USD pair’s pullback. In doing so, the pair takes the bids to 1.2300 while heading into the UK opening on Monday.

Also supporting the recovery is oversold conditions of 14-bar relative strength index (RSI).

As a result, prices may revisit a 38.2% Fibonacci retracement level near 1.2345. However, pair’s further upside will be challenged by the 1.2400 resistance confluence including 100-bar SMA and a falling trend-line from September 20.

In a case, the quote rallies beyond 1.2400, last week’s high surrounding 1.2500 and the monthly top nearing 1.2555 could motivate buyers.

Alternatively, a downside break of 1.2270 could exert further pressure towards 61.8% Fibonacci retracement level of 1.2200 whereas 1.2180, 1.2080 and 1.2000 might flash on bears’ radar afterward.

GBP/USD 4-hour chart

Trend: pullback expected