GBP/USD Price Analysis: Consolidates around 1.2700 after hitting 7-day low

GBP/USD slightly down for the second session in a row.
Technicals indicate losing buyer momentum as RSI approaches the 50-midline.
A drop below 1.2700 could push GBP/USD towards key moving averages near 1.2686 and potentially lower.
Upside seen above 1.2750, with buyers eyeing 1.2800.

Christian Borjon Valencia FXStreet

The British Pound extended its losses for the second consecutive trading session against the US Dollar, following last Friday’s stellar jobs report from the US, which triggered the likelihood of a less dovish Federal Reserve. That and uncertainty on the upcoming Fed’s meeting would keep Cable pressured. Therefore, the GBP/USD trades at 1.2713, down 0.01%

GBP/USD Price Analysis: Technical outlook

After struggling at around 1.2800 with key technical resistance levels, the GBP/USD tumbled below 1.2700 and printed a new seven-day low of 1.2687 before recovering some ground.

Although momentum still favors buyers, the Relative Strength Index (RSI) dropped sharply towards crossing the 50-midline, hinting that buyers are losing momentum. Nevertheless, Monday’s price action seems to form a ‘dragonfly doji,’ a bullish candlestick.

If GBP/USD reclaims 1.2750, it will be possible to challenge the June 7 high of 1.2813. Once cleared, the next resistance line will be 1.2850, followed by 1.2900.

Conversely, if GBP/USD prints a daily close below 1.2700, that would sponsor a leg-down toward the confluence of the 100-day moving average (DMA) at around 1.2686, ahead of the 50 and 200-DMAs each at 1.2602 and 1.2543, respectively.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2718
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.272

Trends
Daily SMA20	1.2718
Daily SMA50	1.26
Daily SMA100	1.2638
Daily SMA200	1.2545

Levels
Previous Daily High	1.2818
Previous Daily Low	1.2716
Previous Weekly High	1.2818
Previous Weekly Low	1.2695
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2755
Daily Fibonacci 61.8%	1.2779
Daily Pivot Point S1	1.2685
Daily Pivot Point S2	1.2649
Daily Pivot Point S3	1.2583
Daily Pivot Point R1	1.2787
Daily Pivot Point R2	1.2853
Daily Pivot Point R3	1.2889

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold retakes $4,400 as receding Fed hike bets undermine USD

Gold is looking to build on Friday's bounce from the $4,300 neighborhood as reduced bets on an immediate Fed rate hike keep US Dollar bulls on the defensive and support the non-yielding bullion. However, the US-Iran standoff could limit deeper USD losses, warranting caution before positioning for the resumption of the XAU/USD pair's recent uptrend to its highest level since June 5.

BTC/USD price outlook: Bitcoin navigating between arc levels. Potential continuation toward $58,000

Overview: Based on Arc Cycle Analysis applied to the 1D chart, Bitcoin is trading between the 0.5 Arc and 0.618 Arc within the current Arc Cycle. Price has cleared the 0.5 Arc and is progressing toward the 0.618 Arc, suggesting continued movement toward the next Arc boundary. Metric

US Dollar Weekly Forecast: Economic cracks challenge Fed rate bets

It was a strange week for the US Dollar: while the geopolitical situation has remained largely unchanged, with the usual back-and-forth between the US, Iran, and occasional third parties, disappointing domestic data have re-emerged, reducing expectations of potential tightening by the Federal Reserve in the next few months.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.