GBP/USD Price Analysis: Cable bears eye 1.2570 and UK GDP

GBP/USD stays pressured within three-week-old bearish trend channel.
Oversold RSI prods Cable sellers ahead of the key data but bearish MACD signals keep bears hopeful.
Firmer US Treasury bond yields, fears of UK recession also weigh on Pound Sterling.

Anil Panchal FXStreet

GBP/USD remains on the back foot at the lowest level in a week, pressured near 1.2670 amid the early hours of Friday’s Asian session. In doing so, the Cable pair traders portray the cautious mood within a three-week-old bearish trend channel, despite holding lower grounds after declining in the last three consecutive days.

It’s worth noting that the Pound Sterling trader’s anxiety can be linked to Friday’s scheduled release of the first readings of the UK’s second quarter (Q2) Gross Domestic Product (GDP), expected 0.0% QoQ versus 0.1% prior, especially amid fears of British recession.

Also read: GBP/USD wavers amid US CPI data; traders focus on UK’s GDP

Adding credence to the downside bias are the bearish MACD signals. However, the nearly oversold RSI hints at the Cable pair’s corrective bounce off the stated channel’s bottom line, close to 1.2570 at the latest.

It should be noted that April’s peak of around 1.2550 and 50% Fibonacci retracement of the pair’s March-July upside, near 1.2470, could challenge the GBP/USD bears afterward. In a case where the quote fails to bounce off 1.2470, it becomes vulnerable to test the 61.8% Fibonacci retracement level of around 1.2310.

On the contrary, GBP/USD bears keep the reins unless the quote defies the channel formation by crossing the 1.2790 hurdle. Even so, a convergence of the previous support line stretched from March and the 21-DMA, close to 1.2835-40 at the latest, appears a tough nut to crack for the Pound Sterling bulls.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2674
Today Daily Change	-0.0045
Today Daily Change %	-0.35%
Today daily open	1.2719

Trends
Daily SMA20	1.2867
Daily SMA50	1.2757
Daily SMA100	1.26
Daily SMA200	1.2337

Levels
Previous Daily High	1.2782
Previous Daily Low	1.2712
Previous Weekly High	1.2873
Previous Weekly Low	1.2621
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2739
Daily Fibonacci 61.8%	1.2755
Daily Pivot Point S1	1.2693
Daily Pivot Point S2	1.2668
Daily Pivot Point S3	1.2623
Daily Pivot Point R1	1.2763
Daily Pivot Point R2	1.2808
Daily Pivot Point R3	1.2834

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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