GBP/USD Price Analysis: Bears in charge as ‘shooting star’ looms

GBP/USD down 0.06% after reaching a three-week high of 1.2634.
RSI flattening suggests normalization of buying pressure.
Support levels at 1.2500, 1.2474, and 1.2466; breach may test 1.2400.
Resistance at 200-DMA, 1.2600, and DMAs at 1.2612 and 1.2644.

Christian Borjon Valencia FXStreet

The Pound Sterling holds to gains versus the US Dollar yet retraced from three-week highs reached at 1.2634 following a softer than expected US Nonfarm Payrolls report. However, buyers lacked the strength to keep prices above 1.2600, opening the door for a test of the 200-day moving average (DMA). The GBP/USD trades at 1.2541, down by 0.06%.

GBP/USD Price Analysis: Technical outlook

The daily chart suggests the GBP/USD spike that breached the 50 and 100-DMA, reassembling a ‘shooting star’ opened the door for sellers to enter the market and dragged the spot price toward current levels. Even though the Relative Strength Index (RSI) suggests that buyers are in charge, it seems to shift flat, an indication of normalization.

Therefore, as GBP/USD bulls lose steam, that could pave the way for a deeper pullback. The first support seen is 1.2500. A drop below that level would expose the May 2 low at 1.2474, ahead of the latest pivot low at 1.2466. Once those two levels are surpassed, up next would be the 1.2400 psychological level.

Conversely, if buyers moved in, the first resistance would be the 200-DMA at 1.2548. Further upside is seen at 1.2600, followed by the 50 and 100-DMAs, each at 1.2612 and 1.2644, respectively.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2546
Today Daily Change	0.0012
Today Daily Change %	0.10
Today daily open	1.2534

Trends
Daily SMA20	1.2502
Daily SMA50	1.2616
Daily SMA100	1.2646
Daily SMA200	1.255

Levels
Previous Daily High	1.2545
Previous Daily Low	1.2472
Previous Weekly High	1.2542
Previous Weekly Low	1.23
Previous Monthly High	1.2709
Previous Monthly Low	1.23
Daily Fibonacci 38.2%	1.2517
Daily Fibonacci 61.8%	1.25
Daily Pivot Point S1	1.2489
Daily Pivot Point S2	1.2444
Daily Pivot Point S3	1.2417
Daily Pivot Point R1	1.2562
Daily Pivot Point R2	1.259
Daily Pivot Point R3	1.2635

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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