GBP/USD Price Analysis: Surges toward 1.2700 on US Dollar weakness

GBP/USD up 0.40%, boosted as the US Dollar Index (DXY) hits a new two-day low.
Technical outlook neutral to slightly bearish, with RSI signaling bearish momentum.
Key support levels at 100-DMA (1.2664), 50-DMA (1.2627), 1.2600, and 200-DMA (1.2553).
Resistance at 1.2700 and 1.2750, with less likelihood of being tested in the near term.

Christian Borjon Valencia FXStreet

The Pound Sterling climbs sharply against the US Dollar as US Treasury bond yields remain unchanged, but the Greenback remains softer as it falls to a fresh two-day low, as depicted by the US Dollar Index (DXY). With the DXY dropping below 105.50, the GBP/USD rose and traded at 1.2691, up 0.40%.

GBP/USD Price Analysis: Technical outlook

From a daily chart perspective, the GBP/USD is neutral to slightly downward biased, even though the exchange rate trades above the daily moving averages (DMA).

The Relative Strength Index (RSI) turned bearish, hinting that sellers are in charge. It is eyeing a break of key support levels, which, once cleared, could cause the GBP/USD to re-test year-to-date (YTD) lows.

The first support would be the 100-DMA at 1.26643, ahead of the 50-DMA at 1.2627. A further downside lies beneath at 1.2600, exposing the 200-DMA at 1.2553 once surpassed. A breach of the latter, the pair will test 1.2500.

Conversely, and the less likely path in the near term, the GBP/USD first resistance level would be 1.2700. Once hurdle, the next stop would be 1.2750.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.269
Today Daily Change	0.0046
Today Daily Change %	0.36
Today daily open	1.2644

Trends
Daily SMA20	1.2737
Daily SMA50	1.2624
Daily SMA100	1.264
Daily SMA200	1.2556

Levels
Previous Daily High	1.2676
Previous Daily Low	1.2623
Previous Weekly High	1.274
Previous Weekly Low	1.2623
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2643
Daily Fibonacci 61.8%	1.2656
Daily Pivot Point S1	1.2619
Daily Pivot Point S2	1.2594
Daily Pivot Point S3	1.2565
Daily Pivot Point R1	1.2672
Daily Pivot Point R2	1.2701
Daily Pivot Point R3	1.2726

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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