GBP/USD Price Analysis: Defies weekly bearish channel above 1.1800

• GBP/USD grinds higher around daily top after trashing one-week-old bearish chart formation.
• Bullish MACD signals, firmer RSI also favor buyers to aim for weekly top.
• Sellers have a bumpy road to return, 200-SMA holds the key to buyer’s conviction.

GBP/USD clings to mild gains around 1.1820 after crossing the short-term bearish channel ahead of Thursday’s London open. In doing so, the Cable pair pares the weekly gains after declining to the lowest levels since March 2020.

In addition to the channel breakout, bullish MACD signals and upward sloping RSI (14), not overbought, also underpins the GBP/USD pair’s upside bias.

As a result, the quote remains on the way to challenging the weekly top surrounding 1.1880, a break of which could quickly propel it towards the 50% Fibonacci retracement of the August 01-23 downturn, near 1.2000. However, the 1.1900 round figure may act as a buffer during the expected rise.

It’s worth noting, though, that the 200-SMA level surrounding 1.2020 appears an important hurdle for the GBP/USD bulls to cross as the clear rise beyond the same could give control to the buyers.

Alternatively, pullback moves need to drop back below the 1.1780 support confluence, comprising the previous resistance line of the stated channel, now support, as well as the two-day-old ascending trend line.

Following that, a south-run towards the recently flashed multi-month low near 1.1720 seems imminent.

However, a sustained trading below 1.1720 won’t hesitate to drag GBP/USD towards the support line of the aforementioned channel, near 1.1590 by the press time.

GBP/USD: Four-hour chart

Trend: Further upside expected