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GBP/USD Price Analysis: Stays firm after strong US data, bears eye 1.2700

GBP/USD remains unchanged after ISM Services PMI indicates economic expansion in May.
Technical outlook shows neutral to upward bias, but resistance at 1.2800 limits gains.
Key levels: Support at 1.2742, 1.2700, and 1.2634; Resistance at 1.2800, YTD high at 1.2893, and 1.2900.

Christian Borjon Valencia FXStreet

The GBP/USD is virtually unchanged in early trading during the North American session, following the release of the Institute for Supply Management (ISM) Services PMI, which showed the economy remains resilient, expanded in May above estimates and the previous month's reading, contrarily to manufacturing activity. Therefore, the major trades at 1.2768, almost flat.

GBP/USD Price Analysis: Technical outlook

Looking at the daily chart, the GBP/USD is showing a neutral to upward bias. However, the failure to break through the confluence of a three-month-old downslope resistance trendline and the 1.2800 figure has led to a further decline in Cable’s value.

Momentum remains supportive of buyers, as the Relative Strength Index (RSI) shifted almost flat, though in bullish territory, while price action hints at bearish signals.

If sellers push the GBP/USD below yesterday’s low of 1.2742, a drop toward 1.2700 is on the cards. Further losses are seen beneath the June 3 low of 1.2694, like the confluence of the 100-day moving average (DMA) and the May 3 high of 1.2634.

Conversely, if buyers keep the exchange rate within the 1.2740 – 1.2800 range, they could lift the spot prices and challenge the abovementioned confluence, at around the top of the range. Gains lie overhead at the year-to-date (YTD) high of 1.2893, followed by the 1.2900 mark.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview

Today last price

1.2761

Today Daily Change

-0.0010

Today Daily Change %

-0.08

Today daily open

1.2771

Trends

Daily SMA20

1.268

Daily SMA50

1.2592

Daily SMA100

1.2636

Daily SMA200

1.2544

Levels

Previous Daily High

1.2818

Previous Daily Low

1.2743

Previous Weekly High

1.2801

Previous Weekly Low

1.2681

Previous Monthly High

1.2801

Previous Monthly Low

1.2446

Daily Fibonacci 38.2%

1.2772

Daily Fibonacci 61.8%

1.2789

Daily Pivot Point S1

1.2736

Daily Pivot Point S2

1.2702

Daily Pivot Point S3

1.2662

Daily Pivot Point R1

1.2811

Daily Pivot Point R2

1.2852

Daily Pivot Point R3

1.2886

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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