- GBP/USD remains unchanged after ISM Services PMI indicates economic expansion in May.
- The technical outlook shows a neutral to bullish bias, but resistance at 1.2800 caps gains.
- Key levels: support at 1.2742, 1.2700 and 1.2634; resistance at 1.2800, high of the year at 1.2893 and 1.2900.
He GBP/USD operates virtually unchanged in early trading in the North American session, following the publication of the Institute for Supply Management (ISM) services PMI, which showed that the economy remains resilient, expanding in May above estimates and reading of the previous month, contrary to manufacturing activity. Therefore, the pair is trading at 1.2768, almost sideways.
GBP/USD Price Analysis: Technical Perspective
Looking at the daily chart, GBP/USD is showing a neutral to bullish bias. However, the failure to break the confluence of a three-month descending resistance trend line and 1.2800 has led to a further decline in the value of the Pound.
Momentum remains favorable for buyers as the RSI remained almost sideways, albeit in bullish territory, while the price action hints at bearish signals.
If sellers push GBP/USD below yesterday’s low of 1.2742, a drop towards 1.2700 is expected. Further losses are expected below the June 3 low of 1.2694, as the confluence of the 100-day moving average and the May 3 high of 1.2634.
On the contrary, if buyers keep the exchange rate within the range of 1.2740 – 1.2800, they could lift spot prices and challenge the confluence mentioned above, around the top of the range. Earnings are above at the year’s high of 1.2893, followed by 1.2900.
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.
