GBP/USD Price Analysis: Cable sellers approach 1.2800 on bearish Pennant confirmation
- GBP/USD retreats from the highest levels since April 2022, snaps four-day uptrend.
- Confirmation of bearish chart pattern, downbeat MACD signals conditions suggest further declines of the Cable pair.
- Multiple key supports, hawkish hopes from BoE prod Pound Sterling sellers.
- Bulls need sustained break of 1.2850 to register further upside.
GBP/USD sellers prod intraday low of around 1.2810 heading into Monday’s London open, printing the first daily loss in five at the highest levels in 14 months.
In doing so, the Cable pair justifies the downside break of a bearish pennant chart formation amid downbeat signals from the MACD and the RSI (14) technical indicators.
That said, the broad US Dollar rebound amid the Juneteenth holiday, as well as backed by the hawkish Fed talks, join the Pound Sterling pair’s consolidation ahead of the Bank of England (BoE) monetary policy meeting to trigger the quote’s latest pullback from the multi-day high.
Also read: GBP/USD hovers near its highest level since April 2022, remains below mid-1.2800s
With this, the GBP/USD sellers are likely to break the 1.2800 round figure. However, a convergence of the 50-Hour Moving Average (HMA) joins two-day-old horizontal support to restrict the pair’s immediate downside near 1.2770-65.
Following that, a one-week-old rising support line and the 200-HMA, respectively near 1.2730 and 1.2600, will be crucial to watch for clear directions.
On the flip side, the Cable pair’s recovery needs validation from the 1.2850 hurdle, marked the last week.
Following that, lows printed in early April 2022 near 1.2970 may check the upside momentum targeting the 1.3000 psychological magnet.
GBP/USD: Hourly chart
Trend: Pullback expected