GBP/USD Price Analysis: Remains bearish, falls below 1.2700

GBP/USD trades below 1.2700 after hitting a two-day high of 1.2720.
Resistance at a broken support trendline could lead to further price drops.
Key support levels: 1.2656 (June 14 low) and 1.2643/34 (100-DMA confluence and May 3 high).

Christian Borjon Valencia FXStreet

The Pound Sterling creeps lower against the US Dollar on Tuesday, amid a scarce economic docket in the UK following the release of mixed data in the United States. At the time of writing, the GBP/USD trades at 1.2688, down 0.12%.

GBP/USD Price Analysis: Technical outlook

Following a dip to a multi-week low of 1.2656, the GBP/USD has shown signs of resilience, managing to regain some ground. However, it's important to note that it still hovers below a one-month broken support trendline turned resistance, which could potentially lead to further price drops.

Momentum shows that sellers remained unchanged, as revealed by the Relative Strength Index (RSI).

If GBP/USD drops below 1.2700, the exchange rate will continue to fall and face the first support, at 1.2656, the June 14 low. Once cleared, the next stop would be the 100-day moving average (DMA) confluence and the May 3 high at 1.2643/34, ahead of 1.2600.

Conversely, if GBP/USD climbs past 1.2720/30, that could exacerbate a rally toward 1.2800.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2689
Today Daily Change	-0.0016
Today Daily Change %	-0.13
Today daily open	1.2705

Trends
Daily SMA20	1.2743
Daily SMA50	1.2614
Daily SMA100	1.264
Daily SMA200	1.2552

Levels
Previous Daily High	1.271
Previous Daily Low	1.2659
Previous Weekly High	1.286
Previous Weekly Low	1.2657
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.269
Daily Fibonacci 61.8%	1.2678
Daily Pivot Point S1	1.2673
Daily Pivot Point S2	1.2641
Daily Pivot Point S3	1.2622
Daily Pivot Point R1	1.2723
Daily Pivot Point R2	1.2742
Daily Pivot Point R3	1.2774

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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