GBP/USD Price Analysis: Downtrend remains, despite bouncing off the daily low

GBP/USD falls 0.20% as market anticipates Bank of England's policy decision.
Technically, the pair shows a downward trend, supported at 1.2467 but remains under seller pressure with a bearish RSI.
If GBP/USD exceeds 1.2500, resistance may occur at 200-DMA (1.2543), 1.2594, and May 3 high of 1.2634.

Christian Borjon Valencia FXStreet

In early trading on Wednesday, the Pound Sterling resumed its downtrend against the US Dollar, as the Greenback remained the strongest currency against other peers. Despite printing losses, Cable remains at familiar levels, ahead of the Bank of England (BoE) monetary policy decision. The GBP/USD trades at 1.2483, down 0.20%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD is biased downward, though it failed to crack a support trendline at around the day’s low of 1.2467, which could have opened the door for further losses. Despite the bounce, momentum is still favoring sellers, with the Relative Strength Index (RSI) standing at bearish territory, with its slope aiming down.

In the event of GBP/USD clearing the 1.2500 psychological level, the next resistance would be the 200-day moving average (DMA) at 1.2543. Once cleared, the next stop would be intermediate resistance at the May 6 high at 1.294, followed by the latest cycle high seen at 1.2634, the May 3 high.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2492
Today Daily Change	-0.0017
Today Daily Change %	-0.14
Today daily open	1.2509

Trends
Daily SMA20	1.2484
Daily SMA50	1.2607
Daily SMA100	1.2642
Daily SMA200	1.2546

Levels
Previous Daily High	1.2568
Previous Daily Low	1.2501
Previous Weekly High	1.2635
Previous Weekly Low	1.2466
Previous Monthly High	1.2709
Previous Monthly Low	1.23
Daily Fibonacci 38.2%	1.2526
Daily Fibonacci 61.8%	1.2542
Daily Pivot Point S1	1.2484
Daily Pivot Point S2	1.2459
Daily Pivot Point S3	1.2417
Daily Pivot Point R1	1.2551
Daily Pivot Point R2	1.2593
Daily Pivot Point R3	1.2618

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.

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