GBP/USD trades within the ascending channel coming from early March and the pair holds slightly above the 20-period Simple Moving Average on the four-hour chart.
Moreover, the Relative Strength Index (RSI) indicator on the same chart stays near 60, suggesting that the bullish bias stays intact despite the recent pullback.
On the downside, 1.2440 (lower-limit of the ascending channel, 20-period SMA) forms key support for GBP/USD. With a four-hour close below that level, additional losses toward 1.2400 (psychological level, static level) and 1.2375 (50-period SMA) could be witnessed.
In case 1.2440 holds as support, GBP/USD could regain its traction and meet resistance at 1.2500 (psychological level, static level, mid-point of the ascending channel) and 1.2525 (April 4 high).
The pair has stabilized above mid-1.2400s after having faced rejection at around 1.2500 on Wednesday. The pair’s near-term technical outlook shows that the bullish bias stays intact but a decline below 1.2440 could open the door for an extended downward correction.
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