GBP/USD Price Analysis: Subdued around 1.2700, with bears in charge pre-FOMC decision

The Pound falls versus Dollar, awaiting Fed policy news.
GBP/USD nears 50-day MA; further drops possible as bears target 1.2600.
Break below 1.2700 may seek weekly lows, with rebound eyeing March highs.

Christian Borjon Valencia FXStreet

The Pound Sterling drops some 0.12% against the US Dollar in early trading during the North American session as traders brace for the Federal Reserve’s monetary policy. A softer inflation report in the United Kingdom (UK) didn’t move the needle in the session, as the GBP/USD trades at 1.2706, with sellers hoping to push prices below the 1.2700 mark.

GBP/USD Price Analysis: Technical outlook

The daily chart portrays the pair as neutral biased; GBP/USD buyers leaned into the 50-day moving average (DMA) at 1.2685, the day’s low, but edged above the 1.2700 handles and hovered around that area. The Relative Strength Index (RSI) points downward below the 50-midline, indicating that selling pressure remains.

If the GBP/USD extends its losses below 1.2700, it will challenge the 50-DMA, followed by the current week’s low of 1.2667. A further downside is seen at the 100-DMA at 1.2619, ahead of the 1.2600 figure.

On the flip side, if buyers reclaim the March 18 high of 1.2746 and break a resistance trendline at around the 1.2745/55 area, expect a recovery toward the 1.2800 mark.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2703
Today Daily Change	-0.0018
Today Daily Change %	-0.14
Today daily open	1.2721

Trends
Daily SMA20	1.272
Daily SMA50	1.2686
Daily SMA100	1.2626
Daily SMA200	1.2594

Levels
Previous Daily High	1.2733
Previous Daily Low	1.2668
Previous Weekly High	1.2865
Previous Weekly Low	1.2725
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2693
Daily Fibonacci 61.8%	1.2708
Daily Pivot Point S1	1.2682
Daily Pivot Point S2	1.2642
Daily Pivot Point S3	1.2616
Daily Pivot Point R1	1.2747
Daily Pivot Point R2	1.2773
Daily Pivot Point R3	1.2813

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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