GBP/USD extending declines, trying to find a floor near 1.21

The GBP/USD continues to backslide as the Pound Sterling weakens further against the Greenback.
US data beats bolstering the USD, UK data-light calendar leaves the GBP to twist in the breeze.
Back half of the trading week to see US & UK GDP, US PCE on Friday.

Joshua Gibson FXStreet

The GBP/USD continues to slip around below the 1.2160 cap on Wednesday trading, dipping to a session low of 1.2110 as selling pressure looks to crack the 1.2100 handle heading into the latter half of the trading week.

A late-day rebound for the Pound Sterling (GBP) is seeing the pair stage a mild pullback to 1.2140, but USD strength continues to remain a key driver in broader markets for the day.

GDP, PCE figures to take center stage for the Thursday-Friday split

US Durable Goods Orders broadly beat expectations on Wednesday, printing at 0.2% and clearing the -0.5% forecast. Thursday will bring US Gross Domestic Product (GDP) numbers, which markets are forecasting to print steady at 2.1%.

The GBP/USD will see some of the week's highest investor focus with the UK's GDP for the second quarter, which is expected to stay in-line with the previous reading of 0.2%, but Friday's action will likely be overshadowed by the US Personal Consumption Expenditure (PCE) Price Index.

US PCE inflation is forecast to print steady at 0.2% for the month of August, with the annualized figure slipping from 4.2% to 3.9% for the same period.

GBP/USD technical outlook

The GBP/USD is firmly embedded deep in bearish territory, and the pair is down over 4% in September alone.

The Pound Sterling is steadily trading into six-month lows against the Greenback, and the next significant technical support zone sits at March's low near 1.1800.

Technical indicators are buried deep into oversold territory, with the Relative Strength Index (RSI) indicator at its lowest values on a 14-day rolling timetable since 2022's September declines into 1.0840.

The 200-day Simple Moving Average (SMA) currently sits north of 1.2400, and the 34-day Exponential Moving Average (EMA) has turned down sharply, and is set to make a bearish cross of the longer MA.

GBP/USD daily chart

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.2141
Today Daily Change	-0.0018
Today Daily Change %	-0.15
Today daily open	1.2159

Trends
Daily SMA20	1.2447
Daily SMA50	1.2631
Daily SMA100	1.2634
Daily SMA200	1.2434

Levels
Previous Daily High	1.2216
Previous Daily Low	1.2153
Previous Weekly High	1.2425
Previous Weekly Low	1.2231
Previous Monthly High	1.2841
Previous Monthly Low	1.2548
Daily Fibonacci 38.2%	1.2177
Daily Fibonacci 61.8%	1.2192
Daily Pivot Point S1	1.2136
Daily Pivot Point S2	1.2113
Daily Pivot Point S3	1.2073
Daily Pivot Point R1	1.2199
Daily Pivot Point R2	1.2238
Daily Pivot Point R3	1.2261

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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