• GBP/USD retreats from five-week high, snaps two-day winning streak.
• Break of immediate support line, downbeat oscillators favor bears.
• Convergence of 100-HMA, fortnight-long ascending trend line appears a tough nut to crack for sellers.

GBP/USD takes offers to refresh the intraday low near 1.2320 after breaking an immediate support line during early Thursday. In doing so, the Cable pair extends late Wednesday’s pullback from the highest level since December 14, 2022, while printing the first daily loss in three.

Not only the downside break of the immediate trend line but bearish MACD signals and the RSI (14) pullback from the overbought territory also suggest the continuation of the latest declines by the Cable pair.

That said, the tops marked during Monday and Tuesday, around 1.2290, offer nearly support to the quote. However, a convergence of the 100-Hour Moving Average (HMA) and an ascending trend line from January 06, close to 1.2250 by the press time, could challenge the GBP/USD bears afterward.

In a case where the pair remains bearish past the 1.2250 support confluence, the 200-HMA level near the 1.2200 round figure could act as the final defense of the GBP/USD buyers.

Alternatively, recovery moves need to cross the support-turned-resistance line stretched from Tuesday, close to 1.2350 by the press time.

Following that, a run-up towards the 1.2400 round figure and the recent peak surrounding 1.2435 can’t be ruled out. It should be observed that the previous monthly peak near 1.2450 will act as an additional upside filter to watch for the GBP/USD bulls.

GBP/USD: Hourly chart

Trend: Limited downside expected