GBPUSD stays defensive after recovering from a one-month low in the last two days. That said, the Cable pair’s latest inaction could be linked to the trader’s cautious mood ahead of the UK’s top-tier data/events, namely Wednesday’s Consumer Price Index (CPI) and Thursday’s Bank of England (BoE) Monetary Policy Announcements. However, the quote’s sustained trading beneath a nine-week-old ascending trend channel and a convergence of the 50 and 100-bar Exponential Moving Averages (EMAs) keep the Pound Sterling sellers hopeful. Even if the pair manage to cross the aforementioned EMA confluence of around 1.2725-30 and also trade successfully beyond the stated channel’s bottom line, close to 1.2765 at the latest, a three-week-old ascending resistance line surrounding 1.2885 will challenge the upside momentum.
On the flip side, a fortnight-long horizontal support region surrounding 1.2640 and the 1.2600 threshold restricts short-term declines of the GBPUSD pair. Following that, the previous monthly low of nearly 1.2445 and the yearly bottom marked in April around 1.2300 may entertain the Pound Sterling sellers. In a case where the Cable pair remains bearish past 1.2300, it becomes vulnerable to slump toward the late 2023 low of near 1.2035 and then to the 1.2000 psychological magnet.
To sum up, the GBPUSD pair’s latest rebound appears elusive as it keeps the previous week’s downside break of technical supports, now resistances. Also favoring the pair sellers is an absence of oversold RSI and likely downbeat UK catalysts.
