Falling wedge at two-year low teases GBPUSD buyers, UK GDP eyed

GBPUSD remains guarded, despite all the difficulties, ahead of the preliminary readings of UK Q1 2022 GDP. In doing so, the cable pair portrays a falling wedge bullish chart pattern at the lowest levels since June 2020. Given the likelihood of firmer UK growth numbers and anticipated positive news from Brexit, not to forget the wedge near multi-month low, the cable has brighter odds of consolidating recent losses. However, a clear upside break of 1.2415 becomes necessary to the ball rolling in favor of buyers. Following that, the 200-SMA level surrounding 1.2850 may probe the theoretical upswing towards 1.3200. It’s worth noting that the 1.3000 psychological magnet and April’s high near 1.3165 can act as additional upside filters to watch.

Alternatively, a disappointment may drag the quote initially towards the latest bottom near 1.2260, a break of which could propel GBPUSD prices towards the stated wedge’s support line, close to 1.2200. In a case where the cable pair remains on the back foot past-1.2200, May 2020 low around 1.2075 might test the bears on the way to the 1.2000 round figure.

Overall, GBPUSD bears seem running out of steam ahead of the key UK data and the falling wedge near the two-year top appears cherry on the top. Though, it all depends upon the British GDP, which in turn requires caution on the part of buyers.