Cable sellers eye previous resistance around 1.3000 and UK inflation

• GBP/USD stays defensive around intraday low after three-day losing streak.
• Clear downside break of short-term support line, bearish MACD signals favor Cable sellers ahead of UK inflation numbers for June.
• Hawkish bias about BoE, convergence of 50-SMA and resistance-turned-support line prods Pound Sterling bears.
• UK CPI needs to print softer outcome for June to defend pair sellers around the multi-month high.

GBP/USD portrays the pre-data anxiety of the Cable pair traders as it seesaws around 1.3030 amid the early hours of Wednesday’s Asian session, following a three-day downtrend. In doing so, the Pound Sterling prods the bears jostling with the bulls who refreshed the 15-month high in the last week.

Also read: GBP/USD retreats below 1.3100 amid underwhelming US data, looming UK inflation report

That said, the previous day’s downside break of a fortnight-old support line, now immediate resistance around 1.3085, joins the bearish MACD signals to lure the GBP/USD sellers.

However, the 10-week-old resistance-turned-support line joins the 50-SMA to highlight the 1.3000-2985 region as a tough nut to crack for the Cable bears.

In a case where the Cable bears manage to conquer the 1.2985 support, backed by the downbeat UK Consumer Price Index (CPI) for June, the odds of witnessing a slump toward the previous monthly high of around 1.2850 can’t be ruled out.

Meanwhile, GBP/USD recovery needs validation from the support-turned-resistance line surrounding 1.3085 to convince the buyers.

Even so, the weekly resistance line of around 1.3125 and multiple levels marked during late 2021 and early 2022 around 1.3175-80 will restrict the Pound Sterling’s further upside.

GBP/USD: Four-hour chart

Trend: Limited downside expected