- GBP/USD is trading below 1.2700 after hitting a two-day high of 1.2720.
- Resistance at a broken support trend line could lead to further price declines.
- Key support levels: 1.2656 (June 14 low) and 1.2643/34 (confluence of 100-day moving average and May 3 high).
The British pound slides against the US dollar on Tuesday, amid a thin economic agenda in the United Kingdom following the release of mixed data in the United States. At the time of writing, the GBP/USD is trading at 1.2688, down 0.12%.
GBP/USD Price Analysis: Technical Perspective
After falling to a multi-week low of 1.2656, GBP/USD has shown signs of resilience, managing to regain some ground. However, it is important to note that it still remains below a broken one-month support trend line that now acts as resistance, which could lead to further price declines.
The momentum shows that the sellers remained unchanged, as revealed by the RSI.
If GBP/USD falls below 1.2700, the exchange rate will continue to fall and face the first support at 1.2656, the June 14 low. Once cleared, the next target would be the confluence of the 100-day moving average (DMA) and the May 3 high at 1.2643/34, ahead of 1.2600.
Conversely, if GBP/USD rises above 1.2720/30, that could exacerbate a rally towards 1.2800.
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.
