#GBPUSD @ 1.24351 remains pressured after reversing from 10-month high in the last two consecutive days., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/USD remains pressured after reversing from 10-month high in the last two consecutive days.
• One-month-old bullish channel, ascending support line from early March prod Cable bears.
• MACD, RSI suggests further consolidation of weekly gains ahead of top-tier US employment data.
• Bulls need validation from 1.2550 to retake control.

The pair currently trades last at 1.24351.

The previous day high was 1.2514 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2464, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2483, expected to provide resistance.

GBP/USD drops to 1.2430 as it extends the two-day downtrend to a sluggish Asian session on Good Friday. In doing so, the Cable pair pares the weekly losses, the fourth consecutive one, while easing from the top line of a one-month-old ascending trend channel.

That said, the GBP/USD pair’s pullback from the short-term key hurdle also gains support from bearish MACD signals and the RSI (14) line’s retreat from the overbought territory, which suggests further declines of the quote.

However, a one-week-old horizontal support area around 1.2430 currently restricts the Cable pair’s immediate downside ahead of an upward-sloping support line from March 08, close to 1.2375.

It’s worth noting, though, that the GBP/USD pair’s weakness past 1.2375 will be tough as the stated channel’s lower line and the 100-SMA, respectively near 1.2350 and 1.2300, could challenge the bears before giving them control.

On the contrary, recovery moves need to cross a downward-sloping resistance line from Tuesday, around 1.2475 by the press time.

Even so, the latest multi-month peak of 1.2525, the highest since June 2022, will precede the aforementioned channel’s top line, around 1.2550, to challenge the GBP/USD buyers.

Should the Cable pair remains firmer past 1.2550, backed by price-positive US Nonfarm Payrolls (NFP), the odds of witnessing a run-up to a May 2022 high of around 1.2665 can’t be ruled out.

Also read: Nonfarm Payrolls Preview: Markets fear depressing data, three scenarios for the US Dollar

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2438 at the time of writing. Pair opened at 1.2462 and is trading with a change of -0.19% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2248, 50 SMA 1.2155, 100 SMA @ 1.2148 and 200 SMA @ 1.1899.

The previous day high was 1.2514 while the previous day low was 1.2433. The daily 38.2% Fib levels comes at 1.2464, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2483, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2425, 1.2388, 1.2344
• Pivot resistance is noted at 1.2506, 1.2551, 1.2588

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