GBP/USD technical analysis: Sellers hold back the run-up towards 50-DMA

• GBP/USD fails to extend the latest recovery.
• Sellers lurk around 1.2240/50 area, highlighting 21-DMA support.
• Buyers can look for 50-DMA during further upside.

GBP/USD buyers’ ability to clear 1.2240/50 resistance-zone seems losing momentum as the pair takes the rounds to 1.2245 ahead of the UK open on Thursday.

With the pair’s failure to rise beyond 1.2240/50 region, including 23.6% Fibonacci retracement of May-September declines and a five-month-old downward sloping trend-line, sellers can again look for 21-day simple moving average (DMA) level of 1.2155.

It should, however, be noted that additional selling pressure below 1.2155 will have lesser stops, namely 1.2030 and 1.2015, before visiting the key 1.2000 mark.

On the upside, 50-DMA near 1.2310 could please buyers whereas 38.2% Fibonacci retracement level near 1.2430 and 100-DMA level of 1.2550 stand tall to challenge the bulls.

GBP/USD daily chart

Trend: pullback expected