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GBP/USD Price Analysis: Consolidates around 1.2700 after hitting 7-day low

  • GBP/USD dips modestly lower for the second consecutive session.
  • Technicals indicate a loss of buying momentum as the RSI approaches the 50 midline.
  • A drop below 1.2700 could push GBP/USD towards key moving averages near 1.2686 and potentially lower.
  • To the upside is seen above 1.2750, with buyers targeting 1.2800.

The British Pound extended its losses for the second consecutive trading session against the US Dollar, following last Friday’s impressive US jobs report, which increased the likelihood of a less dovish Federal Reserve. That and uncertainty over the next Fed meeting would keep the Pound under pressure. Therefore, GBP/USD is trading at 1.2713, down 0.01%

GBP/USD Price Analysis: Technical Outlook

After struggling around 1.2800 with key technical resistance levels, GBP/USD fell below 1.2700 and marked a new seven-day low of 1.2687 before regaining some ground.

Although momentum still favors buyers, the RSI fell sharply towards the midline of 50, hinting that buyers are losing momentum. However, Monday’s price action appears to form a ‘dragonfly doji’, a bullish candlestick.

If GBP/USD recovers 1.2750, it will be possible to challenge the June 7 high of 1.2813. Once cleared, the next resistance line will be 1.2850, followed by 1.2900.

Conversely, if GBP/USD closes daily below 1.2700, that would support a decline towards the confluence of the 100-day moving average (DMA) around 1.2686, before the 50- and 200-day DMAs at 1.2602 and 1.2543. , respectively.

GBP/USD Price Action – Daily Chart

GBP/USD

Summary
Latest price today 1.2718
Today’s daily change -0.0002
Daily change % today -0.02
Today’s daily opening 1,272
Trends
SMA20 Journal 1.2718
SMA50 Daily 1.26
SMA100 Journal 1.2638
SMA200 Journal 1.2545
Levels
Previous Daily High 1.2818
Previous Daily Low 1.2716
Previous Weekly High 1.2818
Previous Weekly Low 1.2695
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2755
Daily Fibonacci 61.8% 1.2779
Daily Pivot Point S1 1.2685
Daily Pivot Point S2 1.2649
Daily Pivot Point S3 1.2583
Daily Pivot Point R1 1.2787
Daily Pivot Point R2 1.2853
Daily Pivot Point R3 1.2889

Source: Fx Street

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