GBP/USD Price Analysis: Struggles to remain above 1.2800, falls

GBP/USD snaps three days of gains, drops below 1.2800.
The pair remains consolidated yet lacks the strength to rally towards the YTD high.
Momentum favors sellers, but they must push GBP/USD below 1.2700.

Christian Borjon Valencia FXStreet

The GBP/USD experienced a retreat early in the North American session, down by 0.23%. This was a continuation of a trend, as the major trades below 1.2800 at around 1.2769 were unable to achieve a daily close above 1.2800 for the ninth consecutive trading day.

GBP/USD Price Analysis: Technical outlook

Despite reaching a three-month high, the GBP/USD remains consolidated, with buyers unable to push the exchange rate above the 1.2800 figure to challenge the year-to-date (YTD) high of 1.2894.

Momentum has shifted, and sellers appear to gather traction, yet the Relative Strength Index (RSI) remains in bullish territory but is dropping towards the 50-midline. Once the RSI pierces the latter, that would be the green light to drive the GBP/USD lower.

Key support levels lie ahead, like the latest cycle low of 1.2687, the June 10 low. A breach of the latter will pave the way toward the confluence of the 100-day moving average (DMA) and the May 16 low of 1.2643 before challenging the 50-DMA at 1.2610.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2771
Today Daily Change	-0.0027
Today Daily Change %	-0.21
Today daily open	1.2798

Trends
Daily SMA20	1.274
Daily SMA50	1.2609
Daily SMA100	1.2639
Daily SMA200	1.2548

Levels
Previous Daily High	1.286
Previous Daily Low	1.2733
Previous Weekly High	1.2818
Previous Weekly Low	1.2695
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2812
Daily Fibonacci 61.8%	1.2782
Daily Pivot Point S1	1.2734
Daily Pivot Point S2	1.267
Daily Pivot Point S3	1.2606
Daily Pivot Point R1	1.2861
Daily Pivot Point R2	1.2925
Daily Pivot Point R3	1.2989

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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.