GBP/USD Price Analysis: Holds steady near 200-hour SMA, just below mid-1.2600s

• GBP/USD gains traction for the second consecutive session on Tuesday.
• The uptick stalled near the 200-DMA hurdle, ahead of the 1.2700 mark.
• A convincing breakthrough will set the stage for further near-term gains.

The GBP/USD pair built on the previous day's strong intraday rally of 150 pips from two-week lows and gained some follow-through traction for the second straight day on Tuesday. The positive momentum stalled near the very important 200-day SMA, just ahead of the 1.2700 round-figure mark, which should now act as a key pivotal point for short-term traders.

The pair witnessed a modest intraday pullback and trimmed a part of its early gains, albeit now seems to have stabilized near 200-hour SMA, around the 1.2640-50 region. Meanwhile, oscillators on the daily chart maintained their bullish bias and have again started gaining traction on hourly charts, supporting prospects for additional gains.

A sustained move beyond the 1.2700 mark will reinforce the positive outlook and set the stage for a move towards the recent daily closing highs, around the 1.2745 region. The upward trajectory could further get extended, which should assist the pair to move beyond the 1.2800 round-figure mark and multi-month tops set last Wednesday.

On the flip side, the 1.2610-1.2600 region now seems to protect the immediate downside, which if broken might accelerate the slide towards the 1.2540-35 horizontal support. Failure to defend the mentioned support levels will negate any bullish bias and turn the pair vulnerable head back towards challenging weekly lows near the 1.2455 region.

GBP/USD 1-hourly chart

Technical levels to watch