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GBP/USD Price Analysis: Downtrend About to Resume

  • 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

GBP/USD

Overview
Latest price today 1.2441
Today Daily Change -0.0008
Today's daily variation -0.06
Today's daily opening 1.2449
Trends
daily SMA20 1.2538
50 daily SMA 1.2629
SMA100 daily 1.2652
SMA200 Journal 1.2563
Levels
Previous daily high 1.2459
Previous daily low 1.2332
Previous weekly high 1.2499
Previous weekly low 1.2367
Previous Monthly High 1.2894
Previous monthly low 1.2575
Daily Fibonacci 38.2 1,241
Fibonacci 61.8% daily 1,238
Daily Pivot Point S1 1.2368
Daily Pivot Point S2 1.2287
Daily Pivot Point S3 1.2241
Daily Pivot Point R1 1.2495
Daily Pivot Point R2 1,254
Daily Pivot Point R3 1.2621

Source: Fx Street

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