GBP/USD bounces-off 4-week low, 1.3000 still elusive

After plunging to a fresh 4-week low at 1.2935 level, the GBP/USD pair managed to recover from lower levels but still remains well below 1.3000 psychological mark. 

Despite of a broadly weaker US Dollar, the pair struggled to build on to its recovery gains on Wednesday and reversed sharply from 1.3100 neighborhood, which extended further on Thursday. 

The pair's tepid bounce-off session through could be attributed to short-covering, from near-term oversold conditions, ahead of the US economic releases, which includes - weekly jobless claims and import price index.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically, the 4 hours chart shows that the price has accelerated its decline after failing to overcome a bearish 20 SMA, while the Momentum indicator lacks directional strength within neutral territory. The RSI however, accelerated lower and stands around 36, supporting a downward extension on a break below the mentioned daily low, towards 1.2880, the next support."

"The pair needs to regain the 1.3020 level to deny further slides and turn short term bullish, with scope then to advance up to 1.3060."