The GBP/USD pair remained under pressure as the Bank of England decided to keep rates unchanged, signaling a possible easing cycle ahead. Mixed economic data from the UK, including strong Retail Sales but softer PMIs, suggested a slowdown in the economy. The currency pair traded at 1.2636, down 0.16% from the previous day’s close. Technical indicators showed a bearish trend, with the RSI pointing downwards and below its neutral line.
After hitting a low of 1.2621, the GBP/USD pair recovered slightly but remained below its opening price. The momentum was in favor of sellers, indicating a potential further downside. A break below the support level of 1.2634 could lead to a test of 1.2600, with the 200-DMA at 1.2552 as the next support level. On the upside, a move above 1.2700 could signal a reversal of the current bearish trend.
In terms of daily price action, the British Pound showed strength against the Japanese Yen, while remaining weaker against the US Dollar, Euro, and Swiss Franc. The heat map displayed the percentage changes of major currencies against each other, with the GBP showing a slight decline against the USD. Overall, the GBP/USD pair continued to face downward pressure, but a reversal could be possible if key resistance levels are breached.
In conclusion, the GBP/USD pair remained heavy after the Bank of England’s ‘dovish’ hold on rates and mixed economic data from the UK. Technical indicators pointed to a bearish trend, with further downside possible if key support levels were breached. However, a reversal could occur if the pair managed to break above key resistance levels. Traders should keep a close eye on economic data and central bank decisions for further direction in the currency pair.
