GBP/USD Price Analysis: Bulls challenge descending channel resistance, around 1.2960-65 region

• GBP/USD reverses the BoE rate cut-led slide to one-week lows.
• The technical set-up warrants some caution for bullish traders.

The GBP/USD pair managed to find decent support near the lower end of a short-term descending trend-channel and quickly reversed an early slide to one-week lows – triggered by the BoE's emergency rate cut.

The pair jumped to fresh session tops in the last hour, albeit lacked any strong follow-through. As the BoE Governor Mark Caney's press conference got underway, the pair held steady above mid-1.2900s.

Meanwhile, technical indicators on the 1-hourly chart are yet to catch up with the pair's strong intraday rally of over 100 pips and warrants some caution before positioning for any further near-term appreciating move.

Hence, any subsequent strength seems more likely to meet with some fresh supply near the mentioned trend-channel resistance, around the 1.2975 region, which is closely followed by the key 1.30 psychological mark.

The latter coincides with 100-hour SMA, which if cleared might be seen as a fresh trigger for intraday bullish traders and set the stage for additional gains, possibly back towards reclaiming the 1.3100 round-figure mark.

On the flip side, the 1.2900-1.2890 region now seems to act as strong immediate support, which if broken, might turn the pair vulnerable to head towards retesting the channel support near the 1.2815-10 area.

GBP/USD 1-hourly chart

Technical levels to watch