GBP/USD Price Analysis: Cable bears flirt with 1.2600, focus on Fed, BoE talks
- GBP/USD remains depressed at the lowest level in two months, licking its wounds after falling the most since late July.
- Four-month-old horizontal support zone, nearly oversold RSI prods Cable sellers.
- Speeches from Fed Chair Powell, BoE Governor Bailey will be crucial for Pound Sterling's directions.
- Hawkish central bank concerns may favor bears but rejections of rate cuts can keep buyers hopeful.
GBP/USD seesaws around the lowest level in two months, after falling the most since late July to refresh the multi-day bottom, as markets await the top-tier central bankers’ speech on early Friday. That said, the Cable pair makes rounds to 1.2600 while poking a four-month-old horizontal support area surrounding 1.2590–2570.
Not only the strong support zone but the nearly oversold conditions of the RSI (14) line also challenge the Pound Sterling sellers ahead of Friday’s speech from Fed Chair Jerome Powell, followed by Saturday’s statements from Bank of England (BoE) Governor Andrew Bailey.
Hence, the GBP/USD price may witness a corrective bounce ahead of the key events.
However, the 100-DMA hurdle of 1.2640 and the bearish MACD signals could challenge the Cable pair’s rebound.
Following that, a one-month-old descending resistance line and the 50-DMA, respectively near 1.2740 and 1.2790, will attract the bids before giving control to the Pound Sterling bulls.
Meanwhile, a daily closing beneath 1.2570 may seek validation from the early June swing high of around 1.2545 before targeting the 200-DMA support of around 1.2400.
GBP/USD: Daily chart
Trend: Limited downside expected
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.
