#GBPUSD @ 1.24280 picks up bids to pare intraday losses inside one-week-old bullish channel., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• GBP/USD picks up bids to pare intraday losses inside one-week-old bullish channel.
• Tops marked on Friday, Monday challenge Cable bulls ahead of the key 1.2445-50 resistance area.
• RSI conditions suggest that the buyers are running out of steam.
• Sellers need to defy bullish chart formation to retake control.

The pair currently trades last at 1.24280.

The previous day high was 1.2424 while the previous day low was 1.2275. The daily 38.2% Fib levels comes at 1.2367, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2332, expected to provide support.

GBP/USD renews intraday high around 1.2430 as it prods a short-term resistance confluence during early Tuesday. In doing so, the Cable pair reverses the early Asian session losses while struggling with the two-day-old horizontal area, as well as the top line of a one-week-long bullish channel.

That said, multiple tops marked since early December 2022 offer an additional upside hurdle of around 1.2445.

It’s worth noting that the nearly overbought RSI (14) challenges the GBP/USD buyers as they jostle with the key upside hurdles.

Hence, the Cable pair’s latest run-up appears elusive unless the quote stays below 1.2450, a break of which could propel the quote towards May 2022 high near 1.2665-70.

The 1.2500 and 1.2600 round figure may act as intermediate halts during the expected rise past 1.2450.

Meanwhile, pullback moves may initially aim for 1.2400 and the 1.2340 support level ahead of highlighting the 200-Hour Moving Average (HMA) level of 1.2320.

Even so, the 1.2300 rounds figure and the stated channel’s bottom line, currently around 1.2290, can act as the last defense of the GBP/USD pair buyers before welcoming the bears.

Overall, GBP/USD is likely to remain firmer but the upside room is likely, which in turn suggests an immediate pullback before the next leg towards the north.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2424 at the time of writing. Pair opened at 1.2413 and is trading with a change of 0.09% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2183, 50 SMA 1.215, 100 SMA @ 1.2136 and 200 SMA @ 1.1896.

The previous day high was 1.2424 while the previous day low was 1.2275. The daily 38.2% Fib levels comes at 1.2367, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2332, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2317, 1.2221, 1.2168
• Pivot resistance is noted at 1.2466, 1.2519, 1.2615

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