The GBP/USD pair is currently under pressure and testing significant support levels after crossing below the 200-day Simple Moving Average (SMA). Further downside movement may see the pair target 1.2600 and potentially extend to May’s low of 1.2445. On the other hand, a recovery above 1.2700 could challenge resistance at 1.2817, with the Relative Strength Index (RSI) indicating a potential consolidation ahead.
The Pound Sterling has been facing losses against the Greenback for the sixth consecutive day due to soft UK GDP data and strong US Retail Sales figures that boosted the US Dollar. GBP/USD is currently trading at 1.2636, down 0.22%.
From a technical perspective, GBP/USD is bearish-biased once it falls below the 200-day SMA. A daily close below the latest intermediate support at 1.2664 would pave the way for further downside movement. The next key support levels would be 1.2600 and the latest cycle low at 1.2445. Conversely, if the pair recovers and rises above 1.2700, it could face resistance at the 200-day SMA at 1.2817.
Oscillators such as the Relative Strength Index (RSI) suggest that the pair might consolidate in the near future. The RSI is nearing oversold conditions and has started to shift flat, indicating a potential pause in the downward movement of GBP/USD.
According to the percentage change data against major currencies today, the British Pound was the strongest against the Canadian Dollar while facing losses against the US Dollar, Euro, Japanese Yen, Australian Dollar, New Zealand Dollar, and Swiss Franc. The heat map displayed in the table indicates the percentage changes of major currencies against each other, with the base currency selected from the left column and the quote currency from the top row.
