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GBP/USD Price Analysis: Pound retreats as buyers struggle to break 1.2700

  • GBP/USD retreats from weekly highs, down 0.25%, after testing 1.2700.
  • Momentum remains bullish, with potential to test 1.2803 and year-to-date high at 1.2893.
  • A further pullback could challenge the support at 1.2634/31 and the 50-day SMA at 1.2594.

The British pound erased Wednesday's gains against the US dollar as investors pushed the currency to fresh weekly highs on developments in disinflation in the United States (US). Although investors are pricing in 38 basis point rate cuts by the Federal Reserve towards the end of the year, the dollar is regaining ground. GBP/USD is trading at 1.2654, down 0.25%.

GBP/USD Price Analysis: Technical Outlook

GBP/USD retreated from weekly highs after briefly testing 1.2700 as buyers failed to decisively break that level, followed by the April 9 high of 1.2709. Despite that, the bullish trend remains intact, with buyers taking a breather.

The momentum, as shown by the RSI, suggests that the bulls are in control, which could lead to further gains.

If buyers manage to reclaim 1.2709, this could potentially open the door to testing 1.2803, the March 21 high, and even the year-to-date high of 1.2893.

On the other hand, a continuation of the pullback witnessed on Thursday could set the stage to challenge the confluence of the May 3 high and the 100-day moving average (DMA) around 1.2634/31 before dipping towards the 50-day SMA at 1.2594.

GBP/USD Price Action – Daily Chart

GBP/USD

Summary
Today's latest price 1.2661
Today's daily change -0.0025
Today's daily change percentage -0.20
Today's daily opening 1.2686
Trends
SMA20 daily 1,251
daily SMA50 1.2593
SMA100 daily 1.2633
SMA200 daily 1.2541
Levels
Previous Daily High 1.2687
Previous Daily Low 1.2584
Previous Weekly High 1.2594
Previous Weekly Low 1.2446
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2647
Daily Fibonacci 61.8% 1.2623
Daily Pivot Point S1 1.2617
Daily Pivot Point S2 1.2549
Daily Pivot Point S3 1.2514
Daily Pivot Point R1 1,272
Daily Pivot Point R2 1.2755
Daily Pivot Point R3 1.2823

Source: Fx Street

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