GBP/USD Forecast: bearish potential intact

The GBP/USD pair trades near its recent lows, having fell down to 1.5452 late Wednesday. Pound was on a one-way ride towards the downside, as fears over a delay in a rate hike, following Chinese turmoil, extended to the UK. 

Additionally, investors returning to the greenback on equities advances weighed on the British currency and the pair consolidates its recent losses, having found selling interest in the 1.5500/10 during the ongoing European session. The only macroeconomic release in the UK was the Nationwide House Prices for August that grew at a slower pace yearly basis, down to 3.2% from 3.5% in July. For the month, prices rose by 0.3%. The US will release its advanced GDP reading for the Q2 in a couple of hours, and if the number matches or surpasses expectations, the pair can extend its decline. Anyway on Friday, the UK will release its own GDP figures, which may result in another strong directional move, depending clearly, on the result.

Technically, the 4 hours chart shows that the bearish bias prevails, as the price is well below its moving averages, albeit the technical indicators have lost their downward strength near oversold territory, supporting additional consolidation, or even an upward corrective movement up to the 1.5540/50 region, where selling interest is expected to resume. Above this last however, the pair can extend up to 1.5580/90, should US data disappoint.

Below the mentioned daily low on the other hand, the ongoing bearish trend can extend down to 1.5410 in the short term, and once below this last, towards 1.5370.