• GBP/USD fades the previous day’s corrective pullback but 200-SMA defends buyers.
• 38.2% Fibonacci retracement level adds to the downside filters.
• Bulls to remain cautious unless crossing 1.2175 hurdle.

GBP/USD retreats to 1.2085 after a mildly positive start to the week, sidelined during Tuesday’s initial Asian session. In doing so, the Cable pair pokes the 200-SMA support while fading the bounce off the 38.2% Fibonacci retracement of June 16 to July 14 downturn.

Given the bearish MACD signals and the recently downward sloping RSI (14), the GBP/USD pair is likely to remain pressured.

However, the aforementioned key SMA and the Fibonacci retracement levels, respectively neat 1.2060 and 1.2000, will be tough nuts to crack for the bears before retaking control.

Following that, a downward trajectory towards the multi-month low marked in July, around 1.1760, can’t be ruled out.

On the flip side, a convergence of the one-week-old descending trend line and the 61.8% Fibonacci retracement level near 1.2160 could restrict the short-term recovery of the GBP/USD pair.

Even if the Cable pair rises past 1.2160, the buyers need validation from the previous support line from mid-July, around 1.2175 to remain on the throne.

To sum up, GBP/USD remains on the seller’s radar but the downside remains sluggish.

GBP/USD: Four-hour chart

Trend: Pullback expected