GBP/USD – 4-hr 50-MA hurdle could be put to test

Pair’s bullish inverted hammer candle formation on the daily chart lst week followed by a bullish break from falling channel and symmetrical triangle formation on the 4-hr chart suggests the prices are likely to test and possibly breach the 4-hr 50-MA resistance seen today at 1.2327.

However, the 4-hr 50-MA is still sloping downwards; hence gains above 1.2327 should be viewed with caution.

On the lower side, break below 1.2149 (confluence of channel support and triangle support) would signal fresh sell-off towards 1.20 handle.