GBP/USD Price Analysis: Cable bears eye 1.2600 region, focus on UK GDP, Fed’s favorite inflation

GBP/USD seesaws around the lowest levels in two weeks, prods two-day downtrend of late.
Bearish MACD signals, clear downside break of two-month-old horizontal support keep Pound Sterling bears hopeful.
Multiple rising support lines, 100-EMA joins steady RSI to test Cable bears.
Upbeat UK GDP, softer US inflation clues may allow Pound Sterling buyers to reprint 1.2600 on chart.

Anil Panchal FXStreet

GBP/USD treads water at the lowest levels in two weeks, around 1.2610-1.2600 amid early Friday morning in Asia. In doing so, the Cable pair fails to justify the midweek’s downside break of the key horizontal support, now resistance, as well as the bearish MACD signals.

The Pound Sterling’s latest inaction could be linked to the market’s cautious mood ahead of the top-tier US and UK data, as well as the presence of ascending support lines from March and May, as well as the steady RSI (14) line.

Hence, the GBP/USD pair is likely to grind lower and suggests a battle with the ascending support line from March 08, around 1.2565, to be imminent.

The Pound Sterling’s weakness past 1.2565, however, isn’t an open invitation to the GBP/USD bears as a five-week-old rising support line, close to 1.2525, will precede the 100-day Exponential Moving Average (EMA), around 1.2420, to restrict further downside of the pair.

Meanwhile, the GBP/USD pair’s corrective bounce past the horizontal area comprising multiple levels marked since early May, between 1.2670 and 1.2690, appears a tough nut to crack for the Cable pair buyers during the corrective bounce.

In a case where the GBP/USD manages to remain firmer past 1.2690, the odds of witnessing a rally towards the yearly top marked in mid-June around 1.2850 can’t be ruled out.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2612
Today Daily Change	-0.0023
Today Daily Change %	-0.18%
Today daily open	1.2635

Trends
Daily SMA20	1.2635
Daily SMA50	1.254
Daily SMA100	1.2368
Daily SMA200	1.2096

Levels
Previous Daily High	1.2753
Previous Daily Low	1.2606
Previous Weekly High	1.2845
Previous Weekly Low	1.2685
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.2662
Daily Fibonacci 61.8%	1.2697
Daily Pivot Point S1	1.2577
Daily Pivot Point S2	1.2519
Daily Pivot Point S3	1.2431
Daily Pivot Point R1	1.2723
Daily Pivot Point R2	1.2811
Daily Pivot Point R3	1.2869

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.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.