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GBP/USD Price Analysis: Firm below 1.2700, bias continues to lean downwards

  • GBP/USD steady as worse-than-expected US consumer confidence report weighs on US dollar.
  • The technical outlook shows a ‘bullish breakthrough’ pattern, but momentum favors sellers, with the RSI in bearish territory.
  • Key support levels will be the 100-day moving average and the May 3 high at 1.2640/34, with further losses expected below the psychological level of 1.2600.
  • Key resistance levels are 1.2700 and the previous support-turned-resistance trend line at 1.2730/40.

The British Pound held firm against the Dollar on Tuesday, although the latter remained positive, and a worse-than-expected consumer confidence report limited the US Dollar’s advance. Therefore, GBP/USD is trading at 1.2678, virtually unchanged.

GBP/USD Price Analysis: Technical Perspective

The pair formed a ‘bullish breakout’ pattern, suggesting that traders could challenge the next resistance seen at 1.2700, although buyers remain reluctant to take GBP/USD towards that level.

Momentum still favors sellers, as shown by the RSI, which remains bearish and points lower. That said, GBP/USD’s path of least resistance is down.

The first support will be the confluence of the 100-day moving average (DMA) and the May 3 high-turned-support around 1.2640/34, closely followed by the 50-day moving average at 1.2632. Once above that area, the key psychological level 1.2600 would be next, before the 200-day moving average at 1.2555.

For a bullish continuation, traders must reclaim 1.2700 and break above a previous support-turned-resistance trend line around 1.2730/40.

GBP/USD Price Action – Daily Chart

GBP/USD

Summary
Latest price today 1.2677
Today’s daily change -0.0008
Daily change % today -0.06
Today’s daily opening 1.2685
Trends
SMA20 Journal 1.2733
SMA50 Daily 1.2629
SMA100 Journal 1.2641
SMA200 Journal 1.2558
Levels
Previous Daily High 1.2698
Previous Daily Low 1.2633
Previous Weekly High 1,274
Previous Weekly Low 1.2623
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2673
Daily Fibonacci 61.8% 1.2658
Daily Pivot Point S1 1.2646
Daily Pivot Point S2 1.2607
Daily Pivot Point S3 1.2581
Daily Pivot Point R1 1.2711
Daily Pivot Point R2 1.2737
Daily Pivot Point R3 1.2776

Source: Fx Street

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