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GBP/USD Price Analysis: Shooting star pattern emerges as sellers target 1.2600

  • The GBP/USD pair drops 0.04% and reaches a maximum of 1.2746 in early North American operations.
  • The technical data shows a bearish trend with a “shooting star” pattern and selling momentum.
  • Support at the May 21 low at 1.2686, the May 16 low at 1.2643 and the psychological level of 1.2600.
  • Resistance at 50-hour SMA (1.2721), 100-hour SMA (1.2712), weekly high 1.2761; potential target at 1.2800.

Early in the North American session, the British pound fell against the dollar after data from the United States showed a rebound in business activity. At the same time, inflationary pressures increased, triggering investor fears that the Fed would delay rate cuts throughout the year. GBP/USD is trading at 1.2711 after hitting a high of 1.2746, down 0.04%

GBP/USD Price Analysis: Technical Insights

GBP/USD is trading lower after a “shooting star” pattern on Wednesday, a prelude to lower prices. Today's price action witnessed a jump towards a high of 1.2750, but it still failed to surpass the current week's high of 1.2761, opening the door for further losses.

In the short term, the one-hour GBP/USD chart suggests that the pair is range-bound, capped to the upside by the 50-hour SMA at 1.2721 and the 100-hour SMA at 1.2712. However, the momentum supports the sellers, as shown by the RSI, which remains bearish and is at its lowest level since May 17.

Therefore, if the pair falls below 1.2700, the next support would be the May 21 low at 1.2686, followed by the May 16 low at 1.2643 and the psychological mark of 1.2600.

Conversely, if buyers push the exchange rate above 1.2746, the weekly high of 1.2761 would be tested. If the pair strengthens further, it could target 1.2800.

GBP/USD Price Action – Hourly Chart

GBP/USD

Overview
Latest price today 1.2713
Today's daily change -0.0004
Today's daily variation -0.03
Today's daily opening 1.2717
Trends
daily SMA20 1.2581
50 daily SMA 1.2582
SMA100 daily 1.2633
SMA200 daily 1.2541
Levels
Previous daily high 1.2761
Previous daily low 1.27
Previous weekly high 1.2712
Previous weekly low 1.2509
Previous Monthly High 1.2709
Previous monthly low 1.23
Daily Fibonacci 38.2 1.2738
Fibonacci 61.8% daily 1.2724
Daily Pivot Point S1 1.2691
Daily Pivot Point S2 1.2665
Daily Pivot Point S3 1,263
Daily Pivot Point R1 1.2752
Daily Pivot Point R2 1.2787
Daily Pivot Point R3 1.2813

Source: Fx Street

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