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  • GBP/USD struggles to keep the bounce off 1.3041.
  • Sustained trading below 50-bar SMA, bearish MACD favor sellers.
  • A two-week-old ascending trend line offers immediate support ahead of 100-bar SMA.

GBP/USD seesaws near 1.3050/55 as markets in Tokyo open for trading on Wednesday. Although the Cable currently probes the previous day’s fall, it’s failures to cross 50-bar SMA joins bearish MACD conditions to suggest further downside.

Other than the technical details, downbeat expectations from the UK’s preliminary GDP reading for the second quarter, forecast -22.4% versus -1.7% YoY, can also weigh on the quote.

Read: UK GDP Preview: Three reasons why 20% contraction estimates are too low, GBP/USD may rise

As a result, an ascending trend line from July 30, at 1.3030 now, gains the sellers’ immediate attention before targeting the 1.3000 threshold and 100-bar SMA level of 1.2965.

Though, the pair’s extended weakness past-1.2965 will make it vulnerable to revisit July 21 top near 1.2765.

On the contrary, a clear break of 50-day SMA, currently around 1.3090, isn’t enough to recall the bulls as a downward sloping trend line from August 06 near 1.3125 also challenges the pair’s short-term upside.

During the pair’s successful rise past-1.3125, the monthly high of 1.3185 and March month’s top near 1.3200 will be the key upside hurdles to watch.

GBP/USD four-hour chart

Trend: Pullback expected