GBP/USD currency pair has lost its bullish momentum and retreated below 1.2100 in the American session on Tuesday.
GBP/USD broke above the 20 and 50-period Simple Moving Averages (SMA) on the four-hour chart with the PMI-inspired upsurge. Additionally, the Relative Strength Index (RSI) indicator climbed above 50, confirming the buildup of bullish momentum.
Once the pair stabilizes above 1.2100 (upper limit of the descending regression channel), it is likely to face strong resistance at 1.2140/50 area (Fibonacci 50% retracement level of the latest uptrend, 100-period SMA) before targeting 1.2200 (200-period SMA).
If the pair returns within the descending channel by failing to hold above 1.2100, 1.2075 (50-period SMA) aligns as immediate support before 1.2000 (mid-point of the channel, psychological level) and 1.1960 (former support, static level).
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