GBP/USD extending declines, trying to find a floor near 1.21

• The GBP/USD continues to backslide as the Pound Sterling weakens further against the Greenback.
• US data beats bolstering the USD, UK data-light calendar leaves the GBP to twist in the breeze.
• Back half of the trading week to see US & UK GDP, US PCE on Friday.

The GBP/USD continues to slip around below the 1.2160 cap on Wednesday trading, dipping to a session low of 1.2110 as selling pressure looks to crack the 1.2100 handle heading into the latter half of the trading week.

A late-day rebound for the Pound Sterling (GBP) is seeing the pair stage a mild pullback to 1.2140, but USD strength continues to remain a key driver in broader markets for the day.

GDP, PCE figures to take center stage for the Thursday-Friday split

US Durable Goods Orders broadly beat expectations on Wednesday, printing at 0.2% and clearing the -0.5% forecast. Thursday will bring US Gross Domestic Product (GDP) numbers, which markets are forecasting to print steady at 2.1%.

The GBP/USD will see some of the week's highest investor focus with the UK's GDP for the second quarter, which is expected to stay in-line with the previous reading of 0.2%, but Friday's action will likely be overshadowed by the US Personal Consumption Expenditure (PCE) Price Index.

US PCE inflation is forecast to print steady at 0.2% for the month of August, with the annualized figure slipping from 4.2% to 3.9% for the same period.

GBP/USD technical outlook

The GBP/USD is firmly embedded deep in bearish territory, and the pair is down over 4% in September alone.

The Pound Sterling is steadily trading into six-month lows against the Greenback, and the next significant technical support zone sits at March's low near 1.1800.

Technical indicators are buried deep into oversold territory, with the Relative Strength Index (RSI) indicator at its lowest values on a 14-day rolling timetable since 2022's September declines into 1.0840.

The 200-day Simple Moving Average (SMA) currently sits north of 1.2400, and the 34-day Exponential Moving Average (EMA) has turned down sharply, and is set to make a bearish cross of the longer MA.

GBP/USD daily chart

GBP/USD technical levels