GBP/USD Technical Analysis: Mildly bid but lower highs setup intact

• GBP/USD is looking south with the hourly chart flashing lower highs, bear MA cross. 
• GBP needs to defend the support at 1.2788 to avoid deeper losses.

GBP/USD is flashing green at press time, but the bias remains bearish with lower highs setup intact on the hourly chart. 

The pair is currently trading at 1.2822, having added more than 10 pips in the last few minutes. 

The outlook as per the hourly chart would turn bullish if the falling trendline resistance at 1.2862 is violated. That, however, looks unlikely, as the US treasury yields are rising. Notably, the 10-year yield has risen from 1.80% to 1.97% - the highest level since Aug. 1. 

Also, the 50-hour moving average has crossed below the 200-hour average to indicate the path of least resistance is to the downside.

The pair, therefore, looks set to test key support at 1.2788 (Oct. 24 low). A violation there would establish a lower high, lower low setup on the daily chart and yield a deeper drop to 1.2579 (July 12 low).

Hourly chart

Trend: Bearish

Technical levels