GBP/USD Price Analysis: Downside pressure from greenback bulls exposes a drop to near 1.2500

The cable has plunged around 3.70% in the last four trading sessions.
A breakdown of the Falling Channel formation has strengthened the greenback bulls.
Investors seek a pullback for making a short entry.

Sagar Dua FXStreet

The GBP/USD pair is falling like a house of cards since Friday after slipping below the two-week-old barricade at 1.2973. The asset has eased around 3.70% in the last four trading sessions and is showing no sign of reversal yet.

The downside breaking of the Falling Channel on the daily scale has vigorously strengthened the greenback bulls. The upper boundary of the above-mentioned chart pattern is placed from June 2021 highs at 1.4249 while the lower boundary is plotted from April 2021 low at 1.3669. A breakdown of the Falling Channel results in volume expansion and wider ticks.

The 10- and 20-period Exponential Moving Averages (EMAs) at 1.2838 and 1.2945 respectively are trending lower, which adds to the downside filters.

Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals a fresh downside impulsive wave ahead.

After a juggernaut downside, a pullback looks likely. Therefore, investors should wait for a pullback to near the round level barricade of 1.2800 for building fresh shorts. Responsive selling at 1.2800 will drag the asset towards the round level supports at 1.2600 and 1.2500 respectively.

On the flip side, the cable can perform well if the asset oversteps the psychological resistance of 1.3000. This will send the pair towards Thursday’s high at 1.3090, followed by a three-week high at 1.3147.

GBP/USD daily chart

GBP/USD

Overview
Today last price	1.2578
Today Daily Change	-0.0163
Today Daily Change %	-1.28
Today daily open	1.2741

Trends
Daily SMA20	1.3041
Daily SMA50	1.3191
Daily SMA100	1.3329
Daily SMA200	1.3497

Levels
Previous Daily High	1.2842
Previous Daily Low	1.2698
Previous Weekly High	1.309
Previous Weekly Low	1.2823
Previous Monthly High	1.3438
Previous Monthly Low	1.3
Daily Fibonacci 38.2%	1.2753
Daily Fibonacci 61.8%	1.2787
Daily Pivot Point S1	1.2678
Daily Pivot Point S2	1.2616
Daily Pivot Point S3	1.2534
Daily Pivot Point R1	1.2823
Daily Pivot Point R2	1.2905
Daily Pivot Point R3	1.2968

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD languishes near weekly low, below 1.3600 as USD bulls await Warsh's speech

The GBP/USD pair is seen consolidating near the lower end of its weekly range, below the 1.3600 mark, during the Asian session. The downside, however, remains cushioned as traders look for more cues about the US Federal Reserve's interest rate path before placing fresh directional bets.

EUR/USD holds gains above 1.1650 on hawkish ECB bias

The EUR/USD pair edges higher to around 1.1655 during the early Asian session. A hawkish stance of the European Central Bank provides some support to the Euro against the US Dollar. Traders will closely monitor the Jackson Hole Symposium event later on Friday for fresh impetus.

Gold keeps sight of $4,700 ahead of Fed Warsh’s speech

Gold is making another run to retest 15-week highs of $4,697 early Thursday. Gold traders are taking advantage of an upbeat mood-led US Dollar (USD) retreat, looking past hot US core Personal Consumption Expenditures (PCE) Price Index data for July. Renewed USD weakness offers the much-needed boost to Gold, following Wednesday’s pullback from near the $4,675 neighbourhood.

Bitcoin holds at $78,000 amid US PCE surprise – SPX6900, VeChain rally

The broader cryptocurrency market maintains a constructive tone, with Bitcoin (BTC) sustaining gains above $78,000 on Thursday. The US July Personal Consumption Expenditures (PCE) Price Index inflation came in higher than expected on Wednesday, suggesting that inflation remains elevated. SPX6900 (SPX) and VeChain (VET) recorded double-digit gains over the last 24 hours, emerging as top performers.

South Korean Won gains on back-to-back BoK interest rate hikes

The South Korean Won trades higher against the US Dollar on Thursday, with USD/KRW falling 0.3% to near 1,380 during the Asian trading session. The pair revisits its 11-month low as back-to-back interest rate hikes by the Bank of Korea have strengthened the currency.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.