GBP/USD - bearish 1-hr 50-MA & 200-MA crossover

Hourly chart of GBP/USD pair once again shows a bearish 50-MA and 200-MA crossover, which suggests the falling tops formation post hawkish Yellen could remain intact amid rising treasury yields.

Trades below 1.31

The bird hovers around 1.3090 after having retreated from the high of 1.3119 levels. The decline from the Asian session high happened due to the uptick in the two-year treasury yield in the US. Moreover, the rise in short-duration yields usually represents rate hike bets/short-term inflation expectations.

The data docket is light in the US. Meanwhile, in UK the money supply figures and net consumer credit could come and go without much fanfare.

GBP/USD Technical Levels

A break below previous day’s low of 1.3059 would open doors for a drop to 1.30 (psychological figure). Further losses could run into strong support of 1.2956 (Aug 9 low). On the higher side, a move above 1.31 would expose 5-DMA hurdle of 1.3148. Acceptance above the same on day end closing basis could yield 1.3214 (50-DMA).