- GBP/USD pulls back at the technical confluence around 1.2800.
- Key support levels lie at 1.2694, 1.2635 and 1.2600.
- GBP/USD could test a yearly high if buyers reclaim 1.2800.
The British Pound lost ground against the US Dollar after hitting a three-month high of 1.2817, but retreated below 1.2800 during the European session. Data from the United States showed that the labor market is cooling, keeping the Dollar in a dominant position. GBP/USD is trading at 1.2775, down 0.25%.
GBP/USD Price Analysis: Technical Perspective
The daily chart shows the pair with a neutral-bullish bias, but struggling to overcome the confluence of a descending resistance trend line drawn from the July highs, passing around 1.2800. Although the momentum favors buyers, as shown by the RSI pointing downwards.
The first support for GBP/USD would be the June 3 low of 1.2694. Once surpassed, the next target would be the 100-day moving average (DMA), which converges with the May 3 high at 1.2635, followed by the 1.2600 mark.
On the other hand, if buyers recover 1.2800, they could host a test of the yearly 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.
