GBP/USD Price Analysis: Indecisive below 1.4200 inside short-term trading range

• GBP/USD struggles to extend two-day recovery moves inside three-week-old range.
• Gradually recovering Momentum line, sustained trading beyond key SMA favor buyers.
• Monthly horizontal support line adds to the downside filters.

GBP/USD marks another failure to cross the 1.4200, recently easing to 1.4180, during the subdued Asian session on Tuesday. Cable rose during the last two days inside the 140-pips of the area between 1.4080 and 1.4220, bracing for the resistance. However, recent weakness probes buyers below the 1.4200 threshold.

It’s worth noting that the Momentum line is in the recovery mode, suggesting the build of the buying side. Though, the upper line of the stated range near 1.4220, followed by the recently flashed multi-month high near 1.4250, could test the GBP/USD bulls.

During the quote pair’s run-up beyond 1.4250, the 1.4300 and April 2018 peak surrounding 1.4375 will be important levels to watch.

On the contrary, pullback moves won’t be worrisome until staying below the 1.4080 range support.

Also important supports are the 200-SMA level near 1.4060 and the monthly horizontal line around 1.4010, quickly followed by the 1.4000 psychological magnet.

Overall, GBP/USD remains bullish inside a short-term trading range.

GBP/USD four-hour chart

Trend: Bullish