GBP/USD Price Analysis: Trims Tuesday’s gains, but failure at 1.3200, exposed the pair to selling pressure

• The British pound on Wednesday gained some 0.32%.
• A dismal market mood failed to pressure the risk-sensitive currencies, which gained on US dollar weakness.
• GBP/USD Price Forecast: Unless bulls reclaim 1.3298, the GBP/USD might aim towards a renewed YTD low test around 1.2999.

The British pound recovered some ground vs. the greenback as the market mood turned sour, courtesy of reports of the Kremlin saying that although Ukraine’s effort to fulfill some of Russia’s demands, peace talks have not reached a breakthrough. At the time of writing, the GBP/USD is trading at 1.3137.

US equities reflected the aforementioned, trimming Tuesday’s gains on the Wednesday session. The US Dollar Index is down 0.58%, sitting at 97.838, portraying its softer tone on the Wednesday session. Furthermore, lower US Treasury yields are a tailwind for the Pound sterling, which reached a daily high of around 1.3182 but retreated towards the mid 1.3100-80 area.

GBP/USD Price Forecast: Technical outlook

The GBP/USD keeps trading within the boundaries of a descending channel in the daily chart. The daily moving averages (DMAs) keep residing above the exchange rate, confirming the downward bias, and as long as the GBP/USD remains below 1.3298, downside risks remain.

That said, the GBP/USD recent jump could be viewed as a rally in a downtrend.

On the way down, the GBP/USD first support would be 1.3100. A sustained break would open the door towards a renewed test of the YTD low at 1.2999 but firstly would face some hurdles on its way down. The next support would be the March 29 1.3050 daily low, followed by the bottom-trendline of the descending channel, which confluences with the YTD low at 1.2999.