- GBP/USD remains pressured around one-week low after declining in the last two consecutive days.
- Clear break of three-week-old ascending support line bearish MACD signals favor Cable sellers.
- Likely increase in UK Claimant Count Change for April may also weigh on GBP/USD price.
- Buyers need validation from 1.2435; convergence of 100, 50 DMA appears a tough nut to crack for bears.
GBP/USD holds lower grounds near 1.2375 as bears flirt with seven-day bottom ahead of the key UK employment report on Tuesday. That said, the Cable pair dropped in the last two consecutive days.
Also read: GBP/USD falls on US Dollar strength amid Fed rate hike speculations
It should be noted that the quote’s clear downside break of an upward-sloping support line from March 24, now immediate resistance near 1.2435, joins bearish MACD signals to lure the GBP/USD bears ahead of the key UK statistics. However, the 21-DMA challenges the pair sellers around 1.2375 of late.
With this, the Cable pair is likely to break the immediate DMA support and can drop further toward the 1.2300 round figure. Though, a convergence of the 100-DMA and the 50-DMA, close to 1.2190 can challenge the pair sellers afterward.
It’s worth observing that February’s high of around 1.2270 can act as an intermediate halt between the 21-DMA and the aforementioned DMA convergence.
On the flip side, the GBP/USD pair’s clear recovery beyond 1.2435 support-turned-resistance will need validation from January’s high of around 1.2450.
Even so, a three-month-old upward-sloping resistance line, near 1.2545 can restrict the quote’s further upside.
GBP/USD: Daily chart
Trend: Further downside expected