GBP/USD Price Analysis: Further downside hinges on 1.2135 break and UK Budget

• GBP/USD remains pressured after reversing from one-month high.
• Convergence of 50-DMA, 23.6% Fibonacci retracement limits immediate downside.
• Bullish MACD signals, upbeat RSI (14) keeps buyers hopeful.
• UK Chancellor Hunt will deliver Budget speech in Parliament at 12:30 GMT.

GBP/USD bears struggle to keep the reins, after entering the ring the previous day, as the quote stays depressed around 1.2160 during early Wednesday. In doing so, the Cable pair grinds near the short-term key support confluence as traders await the UK Finance Minister (Chancellor) Jeremy Hunt’s annual budget speech.

Also read: UK Chancellor Hunt, hemmed in by debt, set to focus on growth in British budget

Apart from the convergence of the 50-DMA and 23.6% Fibonacci retracement level of the GBP/USD pair’s upside from November 2022 to February 2023, around 1.2135, the bullish MACD signals and upbeat RSI (14), not overbought, also favor the Cable pair buyers.

Even if the quote breaks the 1.2135 support confluence, the resistance-turned-support line from mid-February, around 1.2005 at the latest, adds to the downside filters.

It’s worth noting that the GBP/USD bears need validation from the 50% Fibonacci retracement level surrounding 1.1800 to retake control. That said, lows marked during January and in the last week, respectively near 1.1840 and 1.1805, act as additional supports to watch during the quote’s further downside.

On the flip side, February’s top surrounding 1.2270 precedes the 1.2300 and 1.2350 round figures to test the GBP/USD bulls before directing them to the yearly top, marked in February around 1.2450.

Overall, GBP/USD remains on the bull’s radar even if the pair snapped a four-day uptrend, as well as reversed from a one-month high, the previous day.

GBP/USD: Daily chart

Trend: Upside expected