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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.2438
Today Daily Change	-0.0024
Today Daily Change %	-0.19%
Today daily open	1.2462

Trends
Daily SMA20	1.2248
Daily SMA50	1.2155
Daily SMA100	1.2148
Daily SMA200	1.1899

Levels
Previous Daily High	1.2514
Previous Daily Low	1.2433
Previous Weekly High	1.2424
Previous Weekly Low	1.2219
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2464
Daily Fibonacci 61.8%	1.2483
Daily Pivot Point S1	1.2425
Daily Pivot Point S2	1.2388
Daily Pivot Point S3	1.2344
Daily Pivot Point R1	1.2506
Daily Pivot Point R2	1.2551
Daily Pivot Point R3	1.2588

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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