GBP/USD Forecast: Bearish slide pauses ahead of Tuesday's UK jobs data
|The GBP/USD pair kept losing ground through Friday's trading session and weakened to its lowest since June 2017. The pair did get a minor lift from mostly positive UK macro releases - prelim Q2 GDP growth figures, trade balance data and industrial/manufacturing production data, but was quickly sold into, with a combination of negative factors keeping a lid on any meaningful rebound. Against the backdrop of firming prospects for a no-deal Brexit, global flight to safety, triggered by the ongoing currency crisis in Turkey, provided a strong boost to the US Dollar and exerted fresh downward pressure on the major.
The pair struggled to gain any traction and remained within striking distance of over 13-month lows as investors now look forward to the UK monthly employment details, due on Tuesday, for some fresh impetus. In the meantime, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum. Any further deterioration in global risk appetite should continue to drive safe-haven flows and cap any attempted recovery moves.
Despite the recent steep decline, the pair is yet to show any signs of bearish exhaustion and remains vulnerable to continue with its downward trajectory. However, highly oversold conditions warrant some near-term consolidation and could be the only factor helping limit deeper losses, at least for the time being. Hence, any further downside seems more likely to pause near the 1.2725-20 region, which is closely followed by the 1.2700 handle.
On the flip side, any meaningful recovery attempt now seems to confront fresh supply near a short-term descending trend-channel support break-point, now turned resistance, currently near the 1.2800-1.2810 region. A sustained recovery beyond the mentioned barrier might trigger a near-term short-covering bounce and assist the pair further towards reclaiming the 1.2900 handle.
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