- GBP/USD struggles to gain ground around 1.2715 in Monday’s early European session.
- The pair keeps the negative vibe below the 100-period EMA, with bearish RSI indicator on the 4-hour chart.
- The first downside target is seen in the 1.2700–1.2701 zone; the next upside barrier is located at 1.2795.
The GBP/USD pair trades in negative territory for the second consecutive day near 1.2715 during the early European session on Monday. The stronger US Dollar (USD) broadly drags the major pair lower. Investors await the UK Employment data on Tuesday for fresh impetus, including Claimant Count Change, Employment Change, and Average Earnings data. Any evidence of more layoffs in the UK economy might trigger the expectations of early rate cuts from the Bank of England (BoE) and might weigh on the Pound Sterling (GBP).
According to the 4-hour chart, the outlook of GBP/USD turns bearish as it holds below the key 100-period Exponential Moving Average (EMA). The downward momentum is supported by the Relative Strength Index (RSI), which stands around 37.00, indicating the path of least resistance is to the downside.
A decisive break below the lower limit of the Bollinger Band and psychological level at the 1.2700-1.2710 region will pave the way to 1.2681, a low of May 30. Further south, the next contention level is seen at 1.2645, a low of May 17, followed by the 1.2600 round mark.
The major pair should resume the upside if it crosses above the 100-period EMA at 1.2723. The next upside barrier for GBP/USD will emerge at 1.2795, a low of June 5. Any follow-through buying will expose 1.2809, a high of June 6, and finally the upper boundary of the Bollinger Band at 1.2831.
GBP/USD 4-hour 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
EUR/USD retreats below 1.1250, markets await comments from Fed policymakers
EUR/USD struggles to preserve its bullish momentum and retreats below the 1.1250 area in the second half of the day on Tuesday. The cautious market mood and the modest USD rebound weigh on the pair as investors await comments from Federal Reserve officials.
GBP/USD pulls away from daily highs, trades below 1.3350
GBP/USD declines after rising toward 1.3400 earlier in the day and trades below 1.3350 in the American session. The US Dollar holds its ground following Monday's slide, causing the pair to stretch lower. Ahead of Wednesday's UK inflation data, investors will pay close attention to comments from central bankers.
Gold clings to small daily gains above $3,200
Gold fluctuates in a narrow channel above $3,200 on Tuesday after posting small gains to start the week. While the risk-averse market atmosphere helps XAU/USD hold its ground, the Fed's cautious tone on policy easing doesn't allow the pair to gain traction.
Bitcoin fails to reach all-time high despite building institutional and state support
Bitcoin price stabilizes around $105,200 on Tuesday, just 4% shy of its all-time high at $109,588. JPMorgan CEO Jamie Dimon says the bank will let clients buy Bitcoin.The Texas House is set to conduct a second reading of a bill that, if passed, would establish a Bitcoin Reserve.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.