GBP/USD Price Analysis: Buyers remain hopeful above 1.3780

• GBP/USD consolidates recent losses inside a bullish chart pattern.
• 50-SMA, previous resistance from late July offers strong support.
• Upbeat Momentum, rising channel and successful trading beyond 200-SMA keep buyers hopeful.

GBP/USD licks its wounds after the first negative daily closing in three inside a two-week-old ascending trend channel, around 1.3835 during early Tuesday morning in Asia.

Although the cable prices stepped back from the stated bullish formation’s upper line on Friday, keeping the pullback on Monday, the quote remains inside the channel and above 200-SMA.

Also favoring the GBP/USD buyers is an upbeat Momentum line and sustained trading beyond the confluence of resistance-turned-support from July 20 and 50-SMA, around 1.3780.

Hence, the pair’s rebound towards the latest peak near 1.3890 can’t be ruled out but the channel’s resistance and late July top, respectively around 1.3900 and 1.3985, will challenge the bulls afterward.

Meanwhile, pullback moves may eye for 200-SMA level of 1.3812 before challenging the bullish chart pattern with an attack on 1.3800 level.

It’s worth noting that the GBP/USD weakness past 1.3800 will be challenged by the 1.3780 key support, a break of which will direct bears towards reversing the recovery moves from August monthly low near 1.3600.

GBP/USD: Four-hour chart

Trend: Recovery expected