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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.2599
Today Daily Change	-0.0127
Today Daily Change %	-1.00%
Today daily open	1.2726

Trends
Daily SMA20	1.2743
Daily SMA50	1.2796
Daily SMA100	1.2637
Daily SMA200	1.2392

Levels
Previous Daily High	1.2765
Previous Daily Low	1.2615
Previous Weekly High	1.2788
Previous Weekly Low	1.2617
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2672
Daily Fibonacci 61.8%	1.2708
Daily Pivot Point S1	1.2639
Daily Pivot Point S2	1.2552
Daily Pivot Point S3	1.2489
Daily Pivot Point R1	1.2789
Daily Pivot Point R2	1.2852
Daily Pivot Point R3	1.2939

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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