GBP/USD Price Analysis: Cable sellers approach 1.2800 on bearish Pennant confirmation

GBP/USD retreats from the highest levels since April 2022, snaps four-day uptrend.
Confirmation of bearish chart pattern, downbeat MACD signals conditions suggest further declines of the Cable pair.
Multiple key supports, hawkish hopes from BoE prod Pound Sterling sellers.
Bulls need sustained break of 1.2850 to register further upside.

Anil Panchal FXStreet

GBP/USD sellers prod intraday low of around 1.2810 heading into Monday’s London open, printing the first daily loss in five at the highest levels in 14 months.

In doing so, the Cable pair justifies the downside break of a bearish pennant chart formation amid downbeat signals from the MACD and the RSI (14) technical indicators.

That said, the broad US Dollar rebound amid the Juneteenth holiday, as well as backed by the hawkish Fed talks, join the Pound Sterling pair’s consolidation ahead of the Bank of England (BoE) monetary policy meeting to trigger the quote’s latest pullback from the multi-day high.

Also read: GBP/USD hovers near its highest level since April 2022, remains below mid-1.2800s

With this, the GBP/USD sellers are likely to break the 1.2800 round figure. However, a convergence of the 50-Hour Moving Average (HMA) joins two-day-old horizontal support to restrict the pair’s immediate downside near 1.2770-65.

Following that, a one-week-old rising support line and the 200-HMA, respectively near 1.2730 and 1.2600, will be crucial to watch for clear directions.

On the flip side, the Cable pair’s recovery needs validation from the 1.2850 hurdle, marked the last week.

Following that, lows printed in early April 2022 near 1.2970 may check the upside momentum targeting the 1.3000 psychological magnet.

GBP/USD: Hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2817
Today Daily Change	-0.0005
Today Daily Change %	-0.04%
Today daily open	1.2822

Trends
Daily SMA20	1.2495
Daily SMA50	1.2492
Daily SMA100	1.2324
Daily SMA200	1.2045

Levels
Previous Daily High	1.2848
Previous Daily Low	1.2768
Previous Weekly High	1.2848
Previous Weekly Low	1.2487
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.2818
Daily Fibonacci 61.8%	1.2799
Daily Pivot Point S1	1.2777
Daily Pivot Point S2	1.2733
Daily Pivot Point S3	1.2697
Daily Pivot Point R1	1.2857
Daily Pivot Point R2	1.2893
Daily Pivot Point R3	1.2937

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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