• GBP/USD tests key-support trendline turned resistance at around 1.2730.
  • Technical outlook shows momentum favoring buyers, but unable to sustain gains above 1.2800.
  • Key resistance at 1.2739 and 1.2800, with support levels at 1.2700, 1.2643, and 1.2617.

The Pound Sterling modestly gains versus the Greenback on Wednesday, amid thin liquidity conditions, due to US traders being in observance of Juneteenth. Therefore, with US markets being closed, the GBP/USD could remain subdued, and trade at 1.2729 at the time of writing.

GBP/USD Price Analysis: Technical outlook

After hitting a three-month high at 1.2860, the GBP/SD dropped more than 100 pips and cleared a support trendline drawn from lows of May 17 that passes at around 1.2730.

Although momentum favors buyers with the Relative Strength Index (RSI) above the 50-neutral line, the major has failed to sustain the uptrend above 1.2800.

Risk events, like the latest inflation report, could not lift the GBP/USD close to 1.2800. That, along with Thursday’s Bank of England decision, will keep the pair trading volatile in the upcoming days.

Key resistance levels lie at 1.2739, the current week’s high, followed by 1.2800. Once cleared, the next stop would be the monthly high of 1.2860.

Conversely, if GBP/USD stumbles past 1.2700, that will expose the confluence of technical indicators, like the May 3 high turned support and the 50-day moving average (DMA) at 1.2643/39, ahead of the 50-DMA at 1.2617. Further losses lie once cleared, like the 1.2600 figure and the 200-DMA at 1.2550.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price 1.273
Today Daily Change 0.0021
Today Daily Change % 0.17
Today daily open 1.2709
 
Trends
Daily SMA20 1.2743
Daily SMA50 1.2614
Daily SMA100 1.264
Daily SMA200 1.2553
 
Levels
Previous Daily High 1.2721
Previous Daily Low 1.2669
Previous Weekly High 1.286
Previous Weekly Low 1.2657
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2701
Daily Fibonacci 61.8% 1.2689
Daily Pivot Point S1 1.2679
Daily Pivot Point S2 1.2648
Daily Pivot Point S3 1.2627
Daily Pivot Point R1 1.273
Daily Pivot Point R2 1.2752
Daily Pivot Point R3 1.2782

 

 

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