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GBP/USD Price Analysis: Pound is under increasing bearish pressure with 1.2500 support in play

The Pound keeps trading lower with the recent reversal from 1.2700 increasing bearish pressure.
Higher US yields and market expectations of a ‘higher for longer” Fed outlook are expected to support the USD.
GBP/USD is ready to test an important support area at 1.2500.

The Sterling keeps trading within a bearish channel from early March lows and seems ready to test an important support area at 1.2500. Wednesday’s long negative candle reflects an impulsive bearish move and gives sellers hope to explore fresh year-to-date lows.

US Treasury yieldskeep[ rallying and investors reassess their expectations of Fed cuts this year which is acting as a tailwind for the US Dollar. US PPI data and the slight increase in US Jobless claims have provided a certain relief although USD reversals remain limited for now.

Oscillators are pointing lower and the bearish cross between the 50 and the 100-day SMAss are adding weight to the pair. On Friday the UK Industrial Production data might give further direction to the pair.

The next supports are 1.2500 and 1.2450. On the upside 1.2600 and 1.2710 are likely to cap upside attempts.

GBP/USD Daily Chart

GBP/USD

Overview
Today last price	1.2537
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.254

Trends
Daily SMA20	1.2654
Daily SMA50	1.2663
Daily SMA100	1.267
Daily SMA200	1.2587

Levels
Previous Daily High	1.2708
Previous Daily Low	1.252
Previous Weekly High	1.2684
Previous Weekly Low	1.2539
Previous Monthly High	1.2894
Previous Monthly Low	1.2575
Daily Fibonacci 38.2%	1.2592
Daily Fibonacci 61.8%	1.2637
Daily Pivot Point S1	1.2471
Daily Pivot Point S2	1.2402
Daily Pivot Point S3	1.2283
Daily Pivot Point R1	1.2659
Daily Pivot Point R2	1.2778
Daily Pivot Point R3	1.2847

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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