GBP/USD Price Analysis: Stays firm below 1.2700, bearishly biased

GBP/USD is steady as worse-than-expected US Consumer Confidence report, weighs on US Dollar.
Technical outlook shows a 'bullish piercing' pattern, but momentum favors sellers, with RSI standing bearish.
Key support levels will be 100-DMA and the May 3 high at 1.2640/34, with further losses eyed beneath the psychological level of 1.2600.
Key resistance levels are 1.2700 and previous support trendline turned resistance at 1.2730/40.

Christian Borjon Valencia FXStreet

The Pound Sterling stayed firm against the Greenback on Tuesday, even though the latter remained positive, and a worse-than-expected Consumer Confidence report capped the US Dollar advance. Therefore, the GBP/USD trades at 1.2678, virtually unchanged.

GBP/USD Price Analysis: Technical outlook

The pair formed a ‘bullish piercing’ pattern, hinting that traders could challenge the next resistance seen at 1.2700, yet buyers remain reluctant to lift the GBP/USD towards that level.

Momentum still favors sellers, as depicted by the Relative Strength Index (RSI), which remains bearish and aims lower. That said, the GBP/USD path of least resistance is downwards.

The first support will be the confluence of the 100-day moving average (DMA) and the May 3 high-turned support at around 1.2640/34, closely followed by the 50-DMA at 1.2632. Once that area is surpassed, the psychological 1.2600 mark would be up next, ahead of the 200-DMA at 1.2555.

For a bullish continuation, traders must claim 1.2700 and clear a previous support trendline turned resistance at around 1.2730/40.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2677
Today Daily Change	-0.0008
Today Daily Change %	-0.06
Today daily open	1.2685

Trends
Daily SMA20	1.2733
Daily SMA50	1.2629
Daily SMA100	1.2641
Daily SMA200	1.2558

Levels
Previous Daily High	1.2698
Previous Daily Low	1.2633
Previous Weekly High	1.274
Previous Weekly Low	1.2623
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2673
Daily Fibonacci 61.8%	1.2658
Daily Pivot Point S1	1.2646
Daily Pivot Point S2	1.2607
Daily Pivot Point S3	1.2581
Daily Pivot Point R1	1.2711
Daily Pivot Point R2	1.2737
Daily Pivot Point R3	1.2776

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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