GBP/USD Price Analysis: Cable recovery looks to regain 1.2600 on hawkish BoE bias
- GBP/USD remains sidelined at the lowest level in 13 weeks.
- Clear break of key support line, 100-SMA joins bearish MACD signals to favor Cable bears.
- Hawkish comments from BoE’s Broadbent, nearly oversold RSI prod Pound Sterling sellers at multi-day low.
- Summer Bank Holiday in the UK may allow traders to pare recent losses.
GBP/USD picks up bids to print mild gains at the lowest levels since early June, up 0.10% intraday near 1.2585 amid the initial hours of Monday’s Asian session. In doing so, the Cable pair consolidated the biggest weekly loss since mid-July amid holidays in the UK, as well as backed by the hawkish comments from a Bank of England (BoE) official.
That said, BoE Deputy Governor Ben Broadbent appeared hawkish while speaking at the annual Jackson Hole Symposium on Saturday per Reuters. The policymaker, however, couldn’t ignore economic pessimism for the UK.
Technically, a sustained downside break of an ascending trend line from early November 2022 and the 100-DMA, respectively near 1.2725 and 1.2645, keeps the Pound Sterling sellers hopeful, especially amid the bearish MACD signals.
Even if the quote rises past 1.2725, the tops marked in June around 1.2850 will challenge the GBP/USD buyers before giving them control.
On the contrary, the early June swing low of around 1.2545 may check the Cable pair sellers ahead of directing them to a horizontal support zone comprising tops marked during the December 2022 and January 2023, close to 1.2450-45.
Following that, the 200-DMA support of around the 1.2400 threshold will act as the final defense of the GBP/USD buyers.
GBP/USD: Daily 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.
