Extends losing streak, slips below 1.3150

• GBP/USD is showing an uptrend on the daily chart, however the short-term RSI is showing mixed signals.
• Hourly chart reveals bearish trend with pair below 50, 100 and 200-HMA; sellers are targeting 1.3108 and potentially 1.3100.
• Additional support at August 22 low of 1.3076 and August 20 high of 1.3052.
• Buyers claiming the 200-HMA at 1.3148 could push the recovery to 1.3182 (50-HMA) and 1.3200.

GBP/USD extends its losing streak to three days but has bounced back to daily/weekly lows of 1.3129 and is trading hands at 1.3149, down modestly by 0.14%. Data from the United States (US) sent the currency pair lower as the Fed’s preferred gauge of inflation came in as expected, suggesting the US Federal Reserve may cut rates at its next meeting in September.

GBP/USD Price: Technical Insights

On a daily basis, GBP/USD remains bullish despite the pullback towards the 1.3120 area. In the short term, sellers are in charge, as indicated by the Relative Strength Index (RSI), which is upbeat but aiming lower and showing mixed readings.

Zooming in on the hourly chart, GBP/USD is bullish as the exchange rate remains below the 50, 100 and 200 hour moving averages (HMA), with sellers tracking last Friday’s low of 1.3108. Once released, it could pave the way for a test of the 1.3100 figure. Another downside is seen at the August 22 low of 1.3076, ahead of the August 20 high of 1.3052.

If GBP/USD buyers claim the 200-HMA at 1.3148, this could sponsor a rally to the 50-HMA at 1.3182 before 1.3200.

GBP/USD Price Action – Hourly Chart