- GBP/USD remains steady, slightly down by 0.05% following mixed US PMI data from S&P Global and ISM.
- The two-candle chart pattern, the bearish harami suggests further downside is seen.
- Key support levels lie at the April 29 low of 1.2474 could lead to retesting the yearly low at 1.2299.
The Pound Sterling is virtually unchanged against the US Dollar following the release of mixed Purchasing Managers Index (PMI) data from S&P Global and the Institute for Supply Management (ISM). The data showed that the economy is slowing down, amid higher interest rates set by the Federal Reserve. The GBP/USD seesaws around 1.2486, down 0.05%.
GBP/USD Price Analysis: Technical outlook
The GBP/USD remains downward biased despite registering an upward impulse that lifted the exchange rate from yearly lows of 1.2299 to April’s high of 1.2569. the advance was capped by strong resistance provided by the 200-day moving average (DMA) at 1.2552, triggering a two-candle bearish formation – bearish harami. This pattern needs a confirmation past the April 29 low of 1.2474, which would exacerbate a test of the latest swing low of 1.2299.
On the other hand, if buyers achieve a daily close above 1.2500, subsequent gains are seen if they challenge the 200-DMA. Once surpassed, the next stop would be the 1.2600 mark.
GBP/USD Price Action – Daily Chart
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