GBP/USD Price Analysis: Depressed below 50-bar SMA around 1.3050, UK GDP in focus
- GBP/USD struggles to keep the bounce off 1.3041.
- Sustained trading below 50-bar SMA, bearish MACD favor sellers.
- A two-week-old ascending trend line offers immediate support ahead of 100-bar SMA.
GBP/USD seesaws near 1.3050/55 as markets in Tokyo open for trading on Wednesday. Although the Cable currently probes the previous day’s fall, it’s failures to cross 50-bar SMA joins bearish MACD conditions to suggest further downside.
Other than the technical details, downbeat expectations from the UK’s preliminary GDP reading for the second quarter, forecast -22.4% versus -1.7% YoY, can also weigh on the quote.
Read: UK GDP Preview: Three reasons why 20% contraction estimates are too low, GBP/USD may rise
As a result, an ascending trend line from July 30, at 1.3030 now, gains the sellers’ immediate attention before targeting the 1.3000 threshold and 100-bar SMA level of 1.2965.
Though, the pair’s extended weakness past-1.2965 will make it vulnerable to revisit July 21 top near 1.2765.
On the contrary, a clear break of 50-day SMA, currently around 1.3090, isn’t enough to recall the bulls as a downward sloping trend line from August 06 near 1.3125 also challenges the pair’s short-term upside.
During the pair’s successful rise past-1.3125, the monthly high of 1.3185 and March month’s top near 1.3200 will be the key upside hurdles to watch.
GBP/USD four-hour chart
Trend: Pullback expected