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

Guillermo Alcala FXStreet

The Pound keeps trading lower with the recent reversal from 1.2700 increasing bearish pressure.
Higher US yields and market expectations of a ‘higher for longer” Fed outlook are expected to support the USD.
GBP/USD is ready to test an important support area at 1.2500.

The Sterling keeps trading within a bearish channel from early March lows and seems ready to test an important support area at 1.2500. Wednesday’s long negative candle reflects an impulsive bearish move and gives sellers hope to explore fresh year-to-date lows.

US Treasury yieldskeep[ rallying and investors reassess their expectations of Fed cuts this year which is acting as a tailwind for the US Dollar. US PPI data and the slight increase in US Jobless claims have provided a certain relief although USD reversals remain limited for now.

Oscillators are pointing lower and the bearish cross between the 50 and the 100-day SMAss are adding weight to the pair. On Friday the UK Industrial Production data might give further direction to the pair.

The next supports are 1.2500 and 1.2450. On the upside 1.2600 and 1.2710 are likely to cap upside attempts.

GBP/USD Daily Chart

GBP/USD

Overview
Today last price	1.2537
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.254

Trends
Daily SMA20	1.2654
Daily SMA50	1.2663
Daily SMA100	1.267
Daily SMA200	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
Daily Fibonacci 61.8%	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

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.