GBP/USD needs to clear 1.1870 to remain attractive to bulls

GBP/USD has reclaimed 1.1800 following Wednesday's choppy action. The pair needs to clear 1.1870 to extend its rebound, FXStreet’s Eren Sengezer reports.

Cable could face stiff resistance at 1.1870

“On the upside, 1.1870 (Fibonacci 23.6% retracement of the latest downtrend) aligns as initial resistance. With a four-hour close above that level, additional recovery gains toward 1.1900 (50-period SMA, psychological level) and 1.1940 (Fibonacci 38.2% retracement) could be witnessed.”

“Key technical support is located at 1.1800 (20-period SMA, psychological level). If that level fails, sellers could take action and drag the pair lower toward 1.1750 (static level, end-point of the downtrend) and 1.1720 (Aug. 23 low).”