GBP/USD Price Analysis: 50-SMA defends Cable bulls below 1.2700, US NFP, BOE’s Pill eyed

GBP/USD picks up bids to pare the first daily loss in four, bracing for the weekly gain.
Cable bounces off 50-SMA after retreating from five-week-old resistance line.
MACD signals, sustained trading below the key resistance line, 200-SMA keep Pound Sterling sellers hopeful.
Multiple supports to test bears while buyers can cheer 1.2760 breakout.

Anil Panchal FXStreet

GBP/USD portrays the pre-NFP consolidation while bouncing off 50-SMA amid the early hours of Friday’s trading, following the first daily loss in four. That said, the Cable pair picks up bids to 1.2675 by the press time while bracing for the weekly gains.

Despite the latest rebound, the GBP/USD pair remains on the seller’s radar due to the quote’s multiple failures to cross a five-week-long descending resistance line and sustained trading below the 200-SMA. Adding strength to the downside bias is the looming bear cross on the MACD.

With this, the Pound Sterling is likely to portray another attempt to break the 50-SMA support of 1.2660.

Following that, the GBP/USD bears may aim for a slightly descending support line stretched from early August and the previous monthly low, respectively near 1.2610 and 1.2550.

Meanwhile, a downward-sloping resistance line from July 27, near 1.2720, restricts the immediate upside of the Cable pair ahead of the 200-SMA surrounding 1.2760.

In a case where the Pound Sterling remains firmer past 1.2760, the buyers will aim for the previous monthly high of around 1.2830.

Apart from the technical details, the final readings of the UK S&P Global Manufacturing PMI, the US employment report and the ISM Manufacturing PMI for August will also be important to aptly forecast the GBP/USD moves. Also, a speech from the Bank of England (BoE) policymaker Huw Pill will offer additional directions to the pair traders.

GBP/USD: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2674
Today Daily Change	-0.0047
Today Daily Change %	-0.37%
Today daily open	1.2721

Trends
Daily SMA20	1.2702
Daily SMA50	1.2781
Daily SMA100	1.2647
Daily SMA200	1.2411

Levels
Previous Daily High	1.2746
Previous Daily Low	1.2619
Previous Weekly High	1.28
Previous Weekly Low	1.2548
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2698
Daily Fibonacci 61.8%	1.2668
Daily Pivot Point S1	1.2645
Daily Pivot Point S2	1.2568
Daily Pivot Point S3	1.2517
Daily Pivot Point R1	1.2772
Daily Pivot Point R2	1.2823
Daily Pivot Point R3	1.29

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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