- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hangs near multi-week low, flirts with 100-day SMA around mid-0.6600s
AUD/USD languishes near a three-week low touched on Monday, with bears awaiting a sustained break below the 100-day SMA before placing fresh bets amid some follow-through USD strength. Friday's mixed US jobs data tempered expectations for a 50 bps Fed rate cut move later this month and continues to underpin the buck.
USD/JPY steadily climbs back closer to mid-143.00s, upside potential seems limited
The USD/JPY pair turns positive for the second straight day following an early Asian session dip to the 142.85 region, albeit it lacks bullish conviction. Spot prices trade with a mild positive bias just below mid-143.00s and remain well within the striking distance of a one-month low touched last Friday.
Gold consolidates above $2,500 amid mixed cues; bullish bias remains
Gold price struggles to capitalize on the overnight bounce from a multi-day low and oscillates in a narrow trading band, above the $2,500 psychological mark during the Asian session on Tuesday. A positive risk tone and some follow-through USD strength contribute to capping the XAU/USD.
Dogecoin leads meme coin recovery following positive investor sentiment
Dogecoin is up more than 8% on Monday, as it's leading the entire meme coin sector on a rebound. The top meme coin could see a massive rally if it completes a key move within a falling wedge.
Week ahead: ECB poised to cut again, US CPI to get final say on size of Fed cut
ECB is expected to ease again, but will it be another ‘hawkish cut’? US CPI report will be the last inflation update before September FOMC. UK monthly data flurry begins with employment and GDP numbers.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.