- GBP/USD fell 0.06% after hitting a three-week high of 1.2634.
- The flattening of the RSI suggests a normalization of buying pressure.
- Support levels at 1.2500, 1.2474 and 1.2466; breakout could test 1.2400.
- Resistance at the 200 DMA, 1.2600, and the DMAs at 1.2612 and 1.2644.
The British Pound remains higher against the US Dollar, although it retreated from three-week highs of 1.2634 following a weaker-than-expected US Non-Farm Payrolls report. However, buyers lacked strength to sustain prices above 1.2600, opening the door for a test of the 200-day moving average (DMA). The GBP/USD pair is trading at 1.2541, down 0.06%.
GBP/USD Price Analysis: Technical Outlook
The daily chart suggests that the GBP/USD rally that broke the 50 and 100 DMAs, once again forming a “shooting star”, opened the door for sellers to enter the market and dragged the spot price towards the levels current. Although the RSI suggests that buyers are in control, it appears to be moving flat, a sign of normalization.
Therefore, as the GBP/USD bulls lose steam, that could pave the way for a deeper pullback. The first support seen is 1.2500. A fall below that level would expose the May 2 low at 1.2474, before the latest pivot low at 1.2466. Once these two levels have been overcome, the next would be the psychological level of 1.2400.
On the contrary, if buyers were to enter, the first resistance would be the 200-DMA at 1.2548. The next bullish level would be 1.2600, followed by the 50 and 100 DMAs located at 1.2612 and 1.2644, respectively.
GBP/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
