GBP/USD Price Analysis: Sellers remain hopeful around 1.2700 as UK inflation, Fed Minutes loom

GBP/USD fades corrective bounce off six-week low within short-term triangle.
Sustained trading below 200-SMA, steady RSI keeps Cable hears hopeful.
Multiple technical levels beyond 1.2600 stand tall to challenge Pound Sterling’s downside.

Anil Panchal FXStreet

GBP/USD retreats to 1.2700 as bulls fail to keep the reins ahead of Wednesday’s top-tier US/UK catalysts, after a surprise entry the previous day.

That said, the Cable pair eases within a 1.5-month-old symmetrical triangle following a corrective bounce after the UK’s latest employment report. It’s worth noting that the Pound Sterling’s latest restoration of the original trend could also be linked to the market’s cautious mood ahead of British inflation data and Monetary Policy Meeting Minutes of the Federal Open Market Committee (FOMC).

Also read: GBP/USD upthrust spurred by UK’s wage growth, despite US retail sales surge

Technically, the GBP/USD pair’s sustained trading below the 200-SMA and failure to defy the stated triangle formation by an upside break of the 1.2750 immediate hurdle favor the sellers. Adding credence to the downside bias is the steady RSI (14) line.

However, the quote needs to provide a successful downside break of the triangle’s bottom line, close to 1.2670 at the latest to convince the sellers.

Even so, the double bottoms around 1.2620 and a two-month-old horizontal area surrounding 1.2600 can test the GBP/USD bears before giving them control.

On the flip side, a clear break of the 1.2750 isn’t enough for the GBP/USD bulls to retake the driver’s seat as the 200-SMA level of around 1.2830 could challenge the upside momentum.

Following that, the Cable pair’s run-up towards the late July peak surrounding the 1.3000 threshold can’t be ruled out.

GBP/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2701
Today Daily Change	0.0017
Today Daily Change %	0.13%
Today daily open	1.2684

Trends
Daily SMA20	1.2805
Daily SMA50	1.2769
Daily SMA100	1.2613
Daily SMA200	1.2357

Levels
Previous Daily High	1.2715
Previous Daily Low	1.2617
Previous Weekly High	1.2819
Previous Weekly Low	1.2666
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2654
Daily Fibonacci 61.8%	1.2677
Daily Pivot Point S1	1.2629
Daily Pivot Point S2	1.2573
Daily Pivot Point S3	1.253
Daily Pivot Point R1	1.2727
Daily Pivot Point R2	1.277
Daily Pivot Point R3	1.2825

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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