GBP/USD Price Analysis: Cable bears need validation from 1.2500 and UK GDP to keep the reins

GBP/USD licks its wounds after posting the biggest daily loss in seven weeks.
Downside break of two-month-old ascending trend line, bearish MACD signals favor Cable bears.
Nearly oversold RSI (14), upward-sloping trend line from late March challenges the Pound Sterling sellers.
First readings of the United Kingdom (UK) Gross Domestic Product (GDP) for the first quarter (Q1) of 2023 eyed as well.

Anil Panchal FXStreet

GBP/USD seesaws around 1.2515 during early Friday morning in Asia, after posting the biggest daily fall since March 07.

In doing so, the Cable pair justifies the downside break of a two-month-old ascending trend line, as well as bearish MACD signals. However, an upward-sloping trend line from late March, around 1.2500 round figure by the press time, joins the oversold RSI (14) line suggesting a corrective bounce in the GBP/USD price.

In a case where the GBP/USD remains weaker past 1.2500, the 200-bar SMA level of around 1.2470 will act as the last defense of the Cable pair buyers.

Meanwhile, the Pound Sterling’s corrective bounce needs to stay beyond the multi-day-old previous support line, close to 1.2540 at the latest, to convince the GBP/USD buyers.

Following that, a fortnight-old horizontal hurdle near 1.2580 and the recently flashed multi-month high of near 1.2680 could lure the Cable buyers.

Apart from the technical details, the first readings of the UK’s Q1 GDP, expected to print stagnant growth of 0.1% on QoQ but ease to 0.2% YoY versus 0.6% prior, will be the key for the GBP/USD traders to watch for clear directions.

GBP/USD: Four-hour chart

Trend: Limited downside expected

additional important levels

Overview
Today last price	1.2512
Today Daily Change	-0.0114
Today Daily Change %	-0.90%
Today daily open	1.2626

Trends
Daily SMA20	1.2504
Daily SMA50	1.2337
Daily SMA100	1.224
Daily SMA200	1.1957

Levels
Previous Daily High	1.268
Previous Daily Low	1.2603
Previous Weekly High	1.2652
Previous Weekly Low	1.2436
Previous Monthly High	1.2584
Previous Monthly Low	1.2275
Daily Fibonacci 38.2%	1.265
Daily Fibonacci 61.8%	1.2632
Daily Pivot Point S1	1.2592
Daily Pivot Point S2	1.2559
Daily Pivot Point S3	1.2515
Daily Pivot Point R1	1.2669
Daily Pivot Point R2	1.2713
Daily Pivot Point R3	1.2747

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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