Market Analysis

The GBP/USD pair is poised to potentially breach the key psychological support level of 1.2600, potentially revisiting March’s low at 1.2575, as per technical analysis. 

Bearish sentiment is indicated, with the possibility of testing the significant support level at 1.2550. Resistance may be encountered around the 23.6% Fibonacci retracement level at 1.2650 and the nine-day EMA at 1.2668.

GBP/USD has experienced consecutive days of decline, nearing 1.2620 during the Asian session on Wednesday. The pair’s outlook suggests a bearish trend, with indicators such as the 14-day Relative Strength Index (RSI) positioned below 50, indicating bearish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) confirms the bearish trend.

The potential downward movement could lead GBP/USD to test the major support level at 1.2550, followed by February’s low of 1.2518.

Upside movement could encounter resistance at the 23.6% Fibonacci retracement level of 1.2650, potentially providing support for an upward move toward the nine-day Exponential Moving Average (EMA) at 1.2668. Surpassing this level may pave the way for a move towards the psychological level of 1.2700.

GBP/USD: Daily Chart

GBP/USD

Paraphrasing text from "FX Street" all rights reserved by the original author.