GBP/USD Price Analysis: Stays firm below 1.2700, bearishly biased
|- GBP/USD is steady as worse-than-expected US Consumer Confidence report, weighs on US Dollar.
- Technical outlook shows a 'bullish piercing' pattern, but momentum favors sellers, with RSI standing bearish.
- Key support levels will be 100-DMA and the May 3 high at 1.2640/34, with further losses eyed beneath the psychological level of 1.2600.
- Key resistance levels are 1.2700 and previous support trendline turned resistance at 1.2730/40.
The Pound Sterling stayed firm against the Greenback on Tuesday, even though the latter remained positive, and a worse-than-expected Consumer Confidence report capped the US Dollar advance. Therefore, the GBP/USD trades at 1.2678, virtually unchanged.
GBP/USD Price Analysis: Technical outlook
The pair formed a ‘bullish piercing’ pattern, hinting that traders could challenge the next resistance seen at 1.2700, yet buyers remain reluctant to lift the GBP/USD towards that level.
Momentum still favors sellers, as depicted by the Relative Strength Index (RSI), which remains bearish and aims lower. That said, the GBP/USD path of least resistance is downwards.
The first support will be the confluence of the 100-day moving average (DMA) and the May 3 high-turned support at around 1.2640/34, closely followed by the 50-DMA at 1.2632. Once that area is surpassed, the psychological 1.2600 mark would be up next, ahead of the 200-DMA at 1.2555.
For a bullish continuation, traders must claim 1.2700 and clear a previous support trendline turned resistance at around 1.2730/40.
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.