- GBP/USD drifts lower to 1.2620 in Friday’s early European trading hours.
- The bearish outlook of the pair remains intact below the key EMA; RSI indicator supports the downward momentum.
- The first upside barrier is seen in the 1.2645-1.2650 region; the 1.2600-1.2605 zone acts as an initial support level.
The GBP/USD pair trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling (GBP) is backed by the growing speculation that the Bank of England (BoE) will begin the rate-cut cycle this year. Markets are fully pricing in the first rate cut in August, with a total of nearly three quarter-point interest rate cuts this year.
Technically, GBP/USD keeps the bearish vibe unchanged as the major pair is below the key 50-period and 100-period Exponential Moving Average (EMA) on the four-hour chart. Furthermore, the Relative Strength Index (RSI) lies below the 50 midlines, suggesting the downward momentum of the pair and the further decline look favorable.
The immediate resistance level for GBP/USD is seen in the 1.2645–1.2650 region, representing the confluence of the upper boundary of the Bollinger Band and the 50-period EMA. Any follow-through buying above the latter will expose the 100-period EMA at 1.2677. The additional upside filter to watch is a high of March 18 at 1.2746, en route to the 1.2800 psychological round mark.
On the downside, the lower limit of the Bollinger Band at the 1.2600–1.2605 zone acts as an initial support level for the major pair. A decisive break below this level will pave the way to a low of March 22 at 1.2575. The next downside target is located at a low of February 14 at 1.2535, and finally at the 1.2500 round figure.
(This story was corrected on March 29 at 08:30 GMT to say, in the second bullet point, that the bearish outlook remains intact as the pair trades below key EMA levels, not above.)
GBP/USD four-hour chart
-638472879262853275.png)
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 drops below 1.0800 on Trump's 'Liberation Day'
EUR/USD is back in the red below 1.0800 in the early European morning on Wednesday as investors rush for the safe-haven US Dollar, aniticpating US President Donald Trump’s long-threatened “reciprocal” tariffs package, due to be announced at 1900 GMT.
GBP/USD trades with caution above 1.2900, awaits Trump’s tariffs reveal
GBP/USD is trading with caution above 1.2900 early Wednesday, struggles to capitalize on the overnight bounce amid resugent haven demand for the US Dollar. Traders remain wary heading into the US 'reciprocal tariffs' announcement on "Liberation Day' at 1900 GMT.
Gold price remains close to record high amid concerns over Trump’s reciprocal tariffs
Gold price regains positive traction amid concerns about Trump’s aggressive trade policies. Fed rate cut bets keep the USD bulls on the defensive and further benefiting the XAU/USD pair. A broadly stable risk sentiment might cap gains ahead of Trump’s tariffs announcement.
Bitcoin, Ethereum and Ripple brace for volatility amid Trump’s ‘Liberation Day’
Bitcoin price faces a slight rejection around its $85,000 resistance level on Wednesday after recovering 3.16% the previous day. Ripple follows BTC as it falls below its critical level, indicating weakness and a correction on the horizon.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
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.