GBP/USD: Bearish Momentum Expected to Persist Below 1.2700

The GBP/USD pair is trading positively for the second day in a row, hovering around 1.2690 during the early European session on Wednesday.

However, its upside potential appears limited due to expectations of a less aggressive interest rate cut by the US Federal Reserve and concerns about US President-elect Donald Trump's tariff policies, which may support the US dollar. 

Market participants are looking to Federal Reserve Chair Jerome Powell's upcoming speech for insights on future interest rate decisions.

The bearish outlook for GBP/USD remains intact as the pair stays below the key 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the 14-day Relative Strength Index (RSI) remains under 45.35, suggesting potential further downside. 

The immediate support for GBP/USD is seen at the 1.2600 psychological level, with further downside targets at 1.2467, the lower boundary of the Bollinger Band, and 1.2331, the low of April 23. On the upside, resistance is initially at 1.2750 (the November 29 high), followed by 1.2875 (the 100-day EMA) and 1.2920, the upper Bollinger Band boundary.

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