FX.co ★ Technical analysis of GBP/USD for April 29, 2022

The GBP/USD pair retreats from earlier lows near 1.2420 amidst some tepid rebound around the bottom price of 1.2420, although the mood around the dollar remains tilted towards the neural side on Friday.

The price of 1.2420 demand zone remains the next significant level of support for the GBP/USD pair.

Since last week, given the market's bearish momentum and sentiment, another bearish swing towards the 1.2420 support level looks imminent.

But today, the trend of GBP/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.2420 and 1.2578.

Also, the daily resistance and support are seen at the levels of 1.2578 and 1.2420 respectively. Therefore, it is recommended to be cautious while placing orders in this area.

So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 1.2420 and continued to rise towards the top of 1.2578.

Today, in the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 1.2578, the market will indicate a bearish opportunity below the strong resistance level of 1.2578 (the level of 1.2578 coincides with the double top too - 23.6% of Fibonacci).

Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.2578 with the first target at 1.2420.

If the trend breaks the support level of 1.2420, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.2325 in order to test the daily support 2 (horizontal black line).