• Since last Thursday, the GBP/USD has lost more than 3% as the US Dollar strengthened.
  • GBP/USD Price Analysis: Daily close below the 100-DMA would exacerbate a test of 1.2000.

The Pound Sterling (GBP) capped its fall against the US Dollar (USD) on Monday at around the 100-day Exponential Moving Average (EMA) at 1.2028, though the GBP/USD remains below the latter. That said, a GBP/USD daily close would keep bears hopeful of testing the 1.2000 figure. At the time of writing, the GBP/USD hovers around 1.2024 after hitting a daily high of 1.2077.

GBP/USD Price Analysis: Technical outlook

Since last Thursday, after the Bank of England (BoE) raised rates by 50 bps, lifting the Bank Rate to 4%, the GBP/USD collapsed by 1.20%. Then it was followed by last Friday’s US jobs data, which exerted downward pressure, sending the GBP/USD into a tailspin, plummeting more than 150 pips in the session toward the 1.2050 area.

All that said, the technical outlook is tilted to the downside. Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC0 turned bearish. The latter shows that sellers are gathering strong momentum, posing a threat to crack the psychological 1.2000.

If the GBP/USD breaks below 1.20, that would open the door for further downside. Once cleared, GBP/USD’s next support would be 1.1900, followed by a two-month-old upslope trendline that passes at around 1.1880-1.1900 and then the YTD Low at 1.1841.

GBP/USD Key Technical Levels

GBP/USD

Overview
Today last price 1.2019
Today Daily Change -0.0031
Today Daily Change % -0.26
Today daily open 1.205
 
Trends
Daily SMA20 1.2289
Daily SMA50 1.219
Daily SMA100 1.1804
Daily SMA200 1.1955
 
Levels
Previous Daily High 1.2266
Previous Daily Low 1.205
Previous Weekly High 1.2418
Previous Weekly Low 1.205
Previous Monthly High 1.2448
Previous Monthly Low 1.1841
Daily Fibonacci 38.2% 1.2132
Daily Fibonacci 61.8% 1.2183
Daily Pivot Point S1 1.1979
Daily Pivot Point S2 1.1907
Daily Pivot Point S3 1.1763
Daily Pivot Point R1 1.2194
Daily Pivot Point R2 1.2337
Daily Pivot Point R3 1.2409

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD retreats to 1.0750, eyes on Fedspeak

EUR/USD retreats to 1.0750, eyes on Fedspeak

EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.

EUR/USD News

GBP/USD remains on the defensive around 1.2500 ahead of BoE

GBP/USD remains on the defensive around 1.2500 ahead of BoE

The constructive tone in the Greenback maintains the risk complex under pressure on Wednesday, motivating GBP/USD to add to Tuesday's losses and gyrate around the 1.2500 zone prior to the upcoming BoE's interest rate decision.

GBP/USD News

Gold fluctuates in narrow range above $2,300

Gold fluctuates in narrow range above $2,300

Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.

Gold News

SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51

SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51

Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version. 

Read more

Softer growth, cooler inflation and rate cuts remain on the horizon

Softer growth, cooler inflation and rate cuts remain on the horizon

Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.

Read more

Forex MAJORS

Cryptocurrencies

Signatures