GBP/USD Price Analysis: Bears running out of steam ahead of UK GDP
|- GBP/USD remains sidelined around two-year low, maintains weekly falling channel.
- Sluggish RSI, MACD tests further downside around channel’s support.
- Multiple hurdles to the north challenge recovery move unless crossing 1.2415.
- UK’s monthly data dump includes preliminary readings of Q1 GDP, making it the key.
GBP/USD takes rounds to the lowest levels since June 2020 as traders await the UK Q1 GDP during Thursday’s Asian session. In doing so, the cable pair stays inside a one-week-old descending trend channel, flirting with the 1.2250 level by the press time.
Also read: UK GDP Preview: BOE’s R-word to overshadow a mild expansion
That said, the support line of the stated channel, around 1.2235-40, joins nearly oversold RSI and sluggish MACD to challenge the GBP/USD pair’s immediate moves.
Should the quote bounces back from the latest multi-month low, a convergence of the channel’s upper line and three-week-old descending trend line, around 1.2385-80, will test the rebound. Also acting as an immediate upside hurdle is the 50-SMA level surrounding 1.2415.
Hence, the GBP/USD bears seek more clues after traveling a long distance. However, the bulls have a bumpy road to travel and remain unwelcomed before crossing 1.2415.
Should the quote rises past 1.2415, early May’s top surrounding 1.2640 should be on the GBP/USD pair buyer’s radar.
GBP/USD: Four-hour chart
Trend: Corrective pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.