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GBP/USD Price Analysis: Bearish harami pattern confirmed as Pound falls below 1.2700

  • GBP/USD falls to 1.2683, marking a new four-week low of 1.2656 amid risk aversion.
  • Technical Outlook: Momentum is bearish as RSI falls below 50; potential support at 1.2643/38, 50-day SMA at 1.2611 and 200-day SMA at 1.2547.
  • Resistance at 1.2700; if surpassed, consolidation in the range of 1.2700-1.2750 is expected.

The British Pound fell sharply below 1.2700 as risk aversion affected most G7 currencies except safe-haven pairs such as the Dollar. Political turmoil in Europe caused the Euro to collapse against the Swiss Franc, while GBP/USD fell 0.62% and was trading at 1.2683 at the time of writing.

GBP/USD Price Analysis: Technical Perspective

From a technical point of view, GBP/USD has changed from neutral to bearish bias, with momentum hinting that sellers are gaining traction. The Relative Strength Index (RSI) has fallen below 50, turning bearish, while price action shows the pair printing a new four-week low of 1.2656, opening the door for additional losses.

If GBP/USD breaks through the confluence of the 100-day moving average (DMA) and the May 3 high-turned-support around 1.2643/38, that would accelerate the downtrend, exposing the 50-day SMA at 1.2611, before 1.2600. Further losses are expected below the figure, with the 200-day SMA at 1.2547 as the next target.

Conversely, if buyers step in and recapture 1.2700, GBP/USD could consolidate around 1.2700-1.2750 as resistance lies after those levels.

GBP/USD Price Action – Daily Chart

GBP/USD

Summary
Latest price today 1.2683
Today’s daily change -0.0079
Daily change % today -0.62
Today’s daily opening 1.2762
Trends
SMA20 Journal 1.2744
SMA50 Daily 1.2612
SMA100 Journal 1,264
SMA200 Journal 1,255
Levels
Previous Daily High 1.2808
Previous Daily Low 1.2738
Previous Weekly High 1.2818
Previous Weekly Low 1.2695
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2765
Daily Fibonacci 61.8% 1.2781
Daily Pivot Point S1 1.2731
Daily Pivot Point S2 1.27
Daily Pivot Point S3 1.2662
Daily Pivot Point R1 1.2801
Daily Pivot Point R2 1.2839
Daily Pivot Point R3 1,287

Source: Fx Street

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