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

  • The British Pound continues to trade lower, with the recent pullback from 1.2700 increasing bearish pressure.
  • Rising US yields and market expectations of a “more bullish for longer” Fed outlook are expected to support the Dollar.
  • GBP/USD is about to test an important support zone at 1.2500.

The British pound continues to trade within a bearish channel from the early March lows and looks set to test an important support zone at 1.2500. Wednesday's long negative candle reflects an impulsive bearish move and gives sellers hope of exploring new year-to-date lows.

US Treasury yields[rallyandinvestorsreassesstheirexpectationsforFedcutsthisyearwhichisactingasatailwindfortheUSdollarUSPPIdataandaslightincreaseinjoblessclaimshaveprovidedsomereliefalthoughdollarreversalsremainlimitedfornow[repuntanylosinversoresreevalúansusexpectativasderecortesdelaFedesteañoloqueestáactuandocomovientodecolaparaelDólarestadounidenseLosdatosdelIPPdeEEUUyelligeroaumentodelassolicitudesdesubsidiodedesempleohansupuestounciertoalivioaunquelasreversionesdeldólarsiguensiendolimitadasporahora

The oscillators are pointing bearish and the bearish crossover between the 50-day and 100-day SMA adds weight to the pair. Industrial production data in the United Kingdom will be published on Friday.

The next supports are 1.2500 and 1.2450. To the upside, 1.2600 and 1.2710 could limit bullish attempts.

GBP/USD Daily Chart

GBP/USD

Overview
Latest price today 1.2537
Today Daily Change -0.0003
Today's daily variation -0.02
Today's daily opening 1,254
Trends
daily SMA20 1.2654
50 daily SMA 1.2663
SMA100 daily 1,267
SMA200 Journal 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
Fibonacci 61.8% daily 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

Source: Fx Street

You may also like