GBP/USD Price Analysis: Near-term bias seems tilted in favour of bullish traders

• GBP/USD broke through a near one-week-old descending trend-line resistance on Wednesday.
• Acceptance above 200-hour SMA supports prospects for additional gains amid Brexit optimism.

The GBP/USD pair held on to its intraday gains and now seems to have entered a bullish consolidation phase, forming a strong base near 200-hour SMA, around the 1.3420 region.

Looking at the technical picture, the pair on Wednesday broke through a near one-week-old descending trend-line resistance. This, in turn, supports prospects for additional gains amid renewed optimism over the possibility of a last-minute Brexit deal.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive traction on the 1-hourly chart. The set-up further adds credence to the bullish outlook amid a broad-based USD weakness.

That said, investors might still wait for some follow-through buying beyond the overnight swing highs, around mid-1.3400s, before placing fresh bullish bets. The GBP/USD pair might then make a fresh attempt to reclaim the key 1.3500 psychological mark.

On the flip side, the descending trend-line resistance breakpoint, around the 1.3400 mark now seems to protect the immediate downside. This is closely followed by support near the 1.3380-75 region, which if broken will negate the constructive set-up.

A subsequent fall will be seen as a fresh trigger for bearish traders and drag the GBP/USD pair to the 1.3300 mark. The downward trajectory could further get extended to the 1.3225 intermediate support en-route weekly lows, around the 1.3200-1.3190 region.

GBP/USD 1-hourly chart

Technical levels to watch