- GBP/USD drops to 1.2683, marking a new four-week low of 1.2656 amidst risk aversion.
- Technical outlook: Bearish momentum as RSI falls below 50; potential support at 1.2643/38, 50-DMA at 1.2611, and 200-DMA at 1.2547.
- Resistance at 1.2700; if breached, expect consolidation in the range of 1.2700-1.2750.
The Pound Sterling dropped sharply below the 1.2700 figure as risk aversion took its toll on most G7 currencies, except for safe-haven peers like the Greenback. Political turmoil in Europe sent the Euro collapsing against the Swiss Franc, while the GBP/USD falls 0.62% and traded at 1.2683 at the time of writing.
GBP/USD Price Analysis: Technical outlook
From a technical standpoint, the GBP/USD has shifted neutral to downward biased, with momentum hinting that sellers are gathering traction. The Relative Strength Index (RSI) has fallen below 50, turning bearish, while price action shows the pair printed a new four-week low of 1.2656, opening the door for additional losses.
If GBP/USD pierces the confluence of the 100-day moving average (DMA) and May 3 swing high turned support at around 1.2643/38, that would accelerate the downtrend, exposing the 50-DMA at 1.2611, ahead of 1.2600. Further losses are seen below the figure, with the 200-DMA at 1.2547 up next.
Conversely, if buyers moved in and reclaim 1.2700, the GBP/USD could consolidate at around 1.2700-1.2750, as stir resistance lies ahead.
GBP/USD Price Action – Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to recovery gains below 1.0800, US data awaited
EUR/USD is trading under 1.0800, holding the recovery from three-week lows in European trading on Thursday. The pair defends gains amid sustained US Dollar softness as traders digest latest tariff threats from US President Trump. Traders also resort to repositioning ahead of Friday's US PCE inflation data.
Gold just a sigh away from fresh all-time high on Thursday
Gold price sprints higher on Thursday, gaining around 0.70% gains, trading at $3,040 at the time of writing. The pop in the precious metal was infused by U.S. President Donald Trump, who issued fresh new tariffs. Trump signed a proclamation for a 25% tariff on auto imports on Wednesday.
GBP/USD holds gains above 1.2900 on US Dollar weakness
GBP/USD trades with positive bias above 1.2900 in Thursday’s European session. The pair holds the uptick amid persistent US Dollar weakness as fresh Trump tariff threats rekindle US economic slowdown concerns. Focus remains on tariff updates and mid-tier US data.
Curve DAO rallies as developer activity hits new ATH
Curve DAO (CRV) price extends its gains by 8% and trades above $0.58 at the time of writing on Thursday, rallying over 15% so far this week.
Auto tariffs dominate, can European stocks maintain their lead over the US?
Tariffs are yet again dominating market sentiment. European stocks have opened sharply lower after President Trump announced a 25% levy on imports of cars and car parts coming into the US.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.