- GBP/USD loses traction around 1.2123 amid a rise in US Treasury yields.
- The pair holds below the 50- and 100-hour EMAs; RSI is located in bearish territory below 50.
- The first support level is seen at 1.2052; 1.2190 acts as an immediate resistance level.
GBP/USD remains under selling pressure below the mid-1.2100s during the early European session on Thursday. A rise in the US Treasury bond yields and the escalating geopolitical tension between Israel and Hamas boost the US Dollar (USD) demand and exert some selling pressure on the GBP/USD pair. The major currently trades near 1.2123, losing 0.14% on the day.
From the technical perspective, GBP/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, which means further downside looks favorable. Furthermore, the Relative Strength Index (RSI) holds below 50 in the bearish territory, which supports the sellers for the time being.
Any decisive follow-through selling below the lower limit of the Bollinger Band of 1.2120 will see a drop to 1.2052 (low of October 3), en route to a low of October 4 of 1.2037. The next contention level will emerge at a psychological round mark at 1.2000, and finally at 1.1965 (a low of February 16).
On the upside, 1.2190 acts as an immediate resistance level for GBP/USD. The key barrier is located at 1.2217, portraying the confluence of the 100-hour EMA and a high of October 16. Further north, the upper boundary of the Bollinger Band at 1.2230 will be the next stop. The additional upside filter to watch is near a high of October 10 at 1.2295.
GBP/USD four-hour chart
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