- GBP/USD falls slightly as rising US Treasury yields bolster the US Dollar following upbeat US data.
- Technical analysis shows GBP/USD at a key point, with potential to rise towards 1.2500 if it breaks the April 23 high at 1.2458.
- Key downside risks include a pullback to 1.2400 and possibly the April 22 low of 1.2299 if current resistance holds firm.
The British Pound is experiencing slight losses against the US Dollar, largely due to the influence of elevated US Treasury yields, which are supporting the Dollar. This trend was boosted by the release of economic data, which showed that durable goods exceeded expectations, leading to a rebound in US yields and a favorable environment for the Dollar. The GBP/USD pair is currently trading at 1.2444, reflecting a decline of 0.04%.
GBP/USD Price Analysis: Technical Outlook
After forming a “morning star”, the GBP/USD pair is ready to continue printing gains, but traders must decisively overcome the April 23 high at 1.2458, which would pave the way towards 1.2500. Next, the first crucial resistance level would be the 200-day moving average (DMA) at 1.2561, followed by 1.2600.
On the other hand, if GBP/USD remains capped by the April 23 high, it could pave the way for a pullback to 1.2400. A decisive break would expose the April 22 low at 1.2299, which, once broken, could open the door to testing an ascending support trend line drawn from the March 2023 lows passing around 1.2250/60.
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.
