GBP/USD Price Analysis: Slumps for four days as high US bond yields bolster USD

GBP/USD drops to 1.2458 and puts the 200-day Moving Average at 1.2424 in focus.
Short-term outlook shows the pair eyeing the week’s low at 1.2455, with a breach potentially targeting the S2 daily pivot at 1.2413.
A reclaim of the 1.2500 level could signal a bullish reversal, with the next resistance at the 200-hour Moving Average at 1.2593.

Christian Borjon Valencia FXStreet

The Pound Sterling (GBP) extended its free fall for four straight days versus the US Dollar (USD) due to high US bond yields underpinning the Greenback. The GBP/USD is trading at 1.2458 after hitting a daily high of 1.2514, as sellers set their sights on technical support to prolong their profits.

GBP/USD Price Analysis: Technical outlook

After breaking an upslope support trendline drawn from around May lows, the major dropped below the psychological 1.2500 figure, which exposed the 200-day Moving Average (DMA) at 1.2424. A breach of the latter would shift the pair’s bias to neutral downwards and expose the May 25 swing low at 1.2308, a crucial support area. That could break the uptrend market structure and pave the way for further losses.

Short-term, the GPB/USD hourly chart shows an attempt by buyers to reclaim the 1.2500 figure. AS buyers failed, the pair dived towards the session’s lows, below Friday’s central pivot point, eyeing the week’s low at 1.2455. A breach of the latter could expose the S2 daily pivot at 1.2413, followed by the 1.2400 mark. Conversely, if traders reclaim 1.2500, that could open the door for further upside, with traders eyeing the 200-hour Moving Average (HMA) at 1.2593 before challenging 1.2600.

GBP/USD Price Action – Hourly chart

GBP/USD

Overview
Today last price	1.2463
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.2472

Trends
Daily SMA20	1.2655
Daily SMA50	1.2766
Daily SMA100	1.2655
Daily SMA200	1.2426

Levels
Previous Daily High	1.2509
Previous Daily Low	1.2446
Previous Weekly High	1.2746
Previous Weekly Low	1.2563
Previous Monthly High	1.2841
Previous Monthly Low	1.2548
Daily Fibonacci 38.2%	1.247
Daily Fibonacci 61.8%	1.2485
Daily Pivot Point S1	1.2442
Daily Pivot Point S2	1.2413
Daily Pivot Point S3	1.2379
Daily Pivot Point R1	1.2505
Daily Pivot Point R2	1.2539
Daily Pivot Point R3	1.2568

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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