GBP/USD Price Analysis: Depressed below 50-bar SMA around 1.3050, UK GDP in focus

GBP/USD struggles to keep the bounce off 1.3041.
Sustained trading below 50-bar SMA, bearish MACD favor sellers.
A two-week-old ascending trend line offers immediate support ahead of 100-bar SMA.

Anil Panchal FXStreet

GBP/USD seesaws near 1.3050/55 as markets in Tokyo open for trading on Wednesday. Although the Cable currently probes the previous day’s fall, it’s failures to cross 50-bar SMA joins bearish MACD conditions to suggest further downside.

Other than the technical details, downbeat expectations from the UK’s preliminary GDP reading for the second quarter, forecast -22.4% versus -1.7% YoY, can also weigh on the quote.

Read: UK GDP Preview: Three reasons why 20% contraction estimates are too low, GBP/USD may rise

As a result, an ascending trend line from July 30, at 1.3030 now, gains the sellers’ immediate attention before targeting the 1.3000 threshold and 100-bar SMA level of 1.2965.

Though, the pair’s extended weakness past-1.2965 will make it vulnerable to revisit July 21 top near 1.2765.

On the contrary, a clear break of 50-day SMA, currently around 1.3090, isn’t enough to recall the bulls as a downward sloping trend line from August 06 near 1.3125 also challenges the pair’s short-term upside.

During the pair’s successful rise past-1.3125, the monthly high of 1.3185 and March month’s top near 1.3200 will be the key upside hurdles to watch.

GBP/USD four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.3051
Today Daily Change	3 pips
Today Daily Change %	0.02%
Today daily open	1.3048

Trends
Daily SMA20	1.2897
Daily SMA50	1.2678
Daily SMA100	1.2517
Daily SMA200	1.2711

Levels
Previous Daily High	1.3132
Previous Daily Low	1.3042
Previous Weekly High	1.3186
Previous Weekly Low	1.2982
Previous Monthly High	1.317
Previous Monthly Low	1.236
Daily Fibonacci 38.2%	1.3076
Daily Fibonacci 61.8%	1.3098
Daily Pivot Point S1	1.3016
Daily Pivot Point S2	1.2984
Daily Pivot Point S3	1.2925
Daily Pivot Point R1	1.3106
Daily Pivot Point R2	1.3164
Daily Pivot Point R3	1.3197

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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