VOT Research Desk
Technically, the overnight rejection slide from a resistance marked by the top of an ascending channel that has been in place for more than two months might be the first indication of bullish exhaustion.
To be safe, it will be advisable to hold off on declaring that the GBP/USD pair has peaked in the near term until there has been significant follow-through selling.
The 200 DMA, which is currently at the 1.2135 area, is expected to safeguard the immediate downside before the 1.2100 round number in the interim.
The latter should serve as a turning mark that, if strongly violated, will pave the way for a more substantial corrective pullback.
Spot prices would then become vulnerable to a decline below the psychological level of 1.2000 and a test of the next significant support located close to the 1.1935–1.1930 horizontal zone.
On the other hand, immediate resistance is located close to the 1.2250–1.2255 area, over which the GBP/USD pair may attempt to return to retake the 1.2300 level.
The momentum may build up to the multi-month peak, located around the 1.2345 area. Bulls should be able to attempt to test the aforementioned trend-channel resistance, which is currently located around the round number 1.2400, with some follow-through buying.
