GBP/USD Price Analysis: Cable grinds within weekly triangle above 1.2700, focus on US CPI, UK GDP
- GBP/USD remains on the back foot inside one-week-old symmetrical triangle.
- Sustained trading below 50-SMA, short-term bearish trend channel and steady RSI lure Cable sellers.
- Pound Sterling bulls need upside break of 1.2785, backed by softer US inflation, firmer UK Q2 GDP, to retake control.
GBP/USD seesaws around 1.2720 while portraying the pre-data anxiety on early Thursday, after declining in the last two consecutive days.
Apart from the cautious mood ahead of the US Consumer Price Index (CPI) for August, the preliminary readings of the UK’s second quarter (Q2) Gross Domestic Product (GDP), the Cable pair also justifies an absence of major data/events during the Asian session. With this, the Pound Sterling stays within a one-week-old symmetrical triangle, currently between 1.2700 and 1.2785.
Also read: GBP/USD slumps below 50-DMA ahead of US inflation, UK’s GDP figures
Even if the aforementioned catalysts restrict the GBP/USD pair’s immediate moves, the quote’s sustained trading below the 50-SMA, as well as within a three-week-old bearish channel, joins the steady RSI (14) to keep sellers hopeful.
However, a clear break of 1.2700 becomes necessary for the Cable bears to visit June’s bottom of around 1.2590.
Following that, the stated channel’s bottom line, close to 1.2550 at the latest, could challenge the Pound Sterling sellers.
Meanwhile, the 50-SMA surrounding 1.2760 restricts the immediate upside of the GBP/USD pair ahead of the 1.2780-85 resistance confluence including the top lines of the stated triangle and the channel.
In a case where the GBP/USD manages to cross the 1.2785 hurdle, the odds of witnessing a rally towards the late July swing high of around 1.3000 can’t be ruled out.
GBP/USD: Four-hour chart
Trend: Further 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.
