The GBP/USD pair is currently facing a key technical confluence around the 1.2800 level, leading to a retreat from its recent three-month high of 1.2817. The US Dollar remains strong due to cooling labor market data, putting pressure on the GBP. The pair is currently trading at 1.2775, down 0.25% from its recent high.
Looking at the technical analysis, the daily chart shows a neutral-upward bias for the GBP/USD pair. However, it is struggling to break through a downslope resistance trendline drawn from July highs, which is currently around the 1.2800 level. The Relative Strength Index (RSI) indicates momentum favoring buyers, but the RSI itself is pointing lower, signaling potential weakness in the pair.
In terms of support levels, the GBP/USD pair has key levels at 1.2694, 1.2635, and 1.2600. The first support level is at the June 3 low of 1.2694, followed by the 100-day moving average (DMA) at 1.2635, and the psychological level of 1.2600. On the upside, if buyers manage to reclaim the 1.2800 level, the pair could test the year-to-date (YTD) high of 1.2893, with the next target at 1.2900.
Overall, the GBP/USD pair is facing a crucial juncture at the 1.2800 level, with a potential for a test of the YTD high if buyers manage to push through. Traders will be closely watching the key support and resistance levels to gauge the next move in the pair.
