GBP/USD Price Analysis: Trims a part of intraday gains, bulls await ascending channel breakout

• GBP/USD once again stalled the intraday positive move near ascending channel resistance.
• The set-up favours bullish traders and supports prospects for the emergence of dip-buying.
• A sustained break below the 1.3200 mark is needed to negate the near-term bullish outlook.

The GBP/USD pair trimmed a part of its intraday gains to the 1.3380 region and once again witnessed a modest pullback from the top end of a two-month-old ascending trend-channel. The pair's inability to break through the channel resistance warrants some caution for bullish traders.

However, the fact that the GBP/USD pair has managed to hold above the 1.3310-1.3300 resistance breakpoint, the near-term bias seems tilted in favour of bullish traders. Hence, a pullback towards the mentioned resistance-turned-support might still be seen as a buying opportunity.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and further support prospects for the emergence of some dip-buying at lower levels. That said, some follow-through weakness below the 1.3300 mark might prompt some technical selling.

The GBP/USD pair might then accelerate the retracement slide towards the 1.3265-60 horizontal support before eventually dropping to test the 1.3200 round-figure mark. Failure to defend the mentioned support levels will negate the near-term constructive outlook.

On the flip side, bulls might now wait for a sustained strength beyond the 1.3400 mark to confirm a trend-channel breakout. The momentum could then push the GBP/USD pair back towards September monthly swing highs, around the 1.3480 region, en-route the key 1.3500 psychological mark.

GBP/USD daily chart

Technical levels to watch