GBP/USD Price Analysis: Retreats towards 1.2400 within bullish channel as US NFP looms
- GBP/USD remains pressured after reversing from 10-month high in the last two consecutive days.
- One-month-old bullish channel, ascending support line from early March prod Cable bears.
- MACD, RSI suggests further consolidation of weekly gains ahead of top-tier US employment data.
- Bulls need validation from 1.2550 to retake control.
GBP/USD drops to 1.2430 as it extends the two-day downtrend to a sluggish Asian session on Good Friday. In doing so, the Cable pair pares the weekly losses, the fourth consecutive one, while easing from the top line of a one-month-old ascending trend channel.
That said, the GBP/USD pair’s pullback from the short-term key hurdle also gains support from bearish MACD signals and the RSI (14) line’s retreat from the overbought territory, which suggests further declines of the quote.
However, a one-week-old horizontal support area around 1.2430 currently restricts the Cable pair’s immediate downside ahead of an upward-sloping support line from March 08, close to 1.2375.
It’s worth noting, though, that the GBP/USD pair’s weakness past 1.2375 will be tough as the stated channel’s lower line and the 100-SMA, respectively near 1.2350 and 1.2300, could challenge the bears before giving them control.
On the contrary, recovery moves need to cross a downward-sloping resistance line from Tuesday, around 1.2475 by the press time.
Even so, the latest multi-month peak of 1.2525, the highest since June 2022, will precede the aforementioned channel’s top line, around 1.2550, to challenge the GBP/USD buyers.
Should the Cable pair remains firmer past 1.2550, backed by price-positive US Nonfarm Payrolls (NFP), the odds of witnessing a run-up to a May 2022 high of around 1.2665 can’t be ruled out.
Also read: Nonfarm Payrolls Preview: Markets fear depressing data, three scenarios for the US Dollar
GBP/USD: Four-hour chart
Trend: Limited 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.
