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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).

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 price1.2689
Today Daily Change-0.0016
Today Daily Change %-0.13
Today daily open1.2705
 
Trends
Daily SMA201.2743
Daily SMA501.2614
Daily SMA1001.264
Daily SMA2001.2552
 
Levels
Previous Daily High1.271
Previous Daily Low1.2659
Previous Weekly High1.286
Previous Weekly Low1.2657
Previous Monthly High1.2801
Previous Monthly Low1.2446
Daily Fibonacci 38.2%1.269
Daily Fibonacci 61.8%1.2678
Daily Pivot Point S11.2673
Daily Pivot Point S21.2641
Daily Pivot Point S31.2622
Daily Pivot Point R11.2723
Daily Pivot Point R21.2742
Daily Pivot Point R31.2774

Author

Christian Borjon Valencia

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

More from Christian Borjon Valencia
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