GBP/USD Price Analysis: The cable reversal pattern is still holding

• GBP/USD trades just under flat on Wednesday and 1.30 still holds.
• There was some interesting GDP data out earlier in the session.

GBP/USD 1-hour chart

GBP is in full consolidation mode at the moment and there are some signs the uptrend may be coming to an end. Today (Wednesday) it was confirmed the UK has entered another recession but this was largely known to the market and priced in. In fact, the data beat analyst estimates but only marginally.

Looking at the chart, the price has hit the mean value of the current consolidation and moved lower. 1.3060 seems to be a magnet for the price at the moment and the price has touched the level over 30 times on this chart alone. 

The level on the downside that will confirm the reversal is a break of 1.2980. The black trendline has now been broken but it's not the strongest of signals. The next support is at the green line near 1.3010. 

The indicators are very mixed at the moment. The MACD histogram is green but the signal lines are under the zero level. The Relative Strength Index is still under the 50 zone but it has moved away from being oversold. This means there is now more room to the downside.

Overall, the trend in GBP/USD is still up on the higher timeframes. This 1-hour chart does show there is some potential in the reversal pattern but the consolidation low needs to be taken out first. A break back below in the MACD histogram would also go a long way to help the confirmation of the bearish trade.

Additional levels