In the latest trading session, the GBP/USD pair fell by 0.20% as investors awaited the Bank of England’s policy decision. Technically, the pair showed a downward trend, finding support at 1.2467 but facing pressure from sellers, as indicated by a bearish RSI. If GBP/USD manages to surpass the 1.2500 level, it may encounter resistance at the 200-DMA of 1.2543, followed by levels at 1.2594 and the May 3 high of 1.2634.
The Pound Sterling continued its decline against the US Dollar in early trading on Wednesday, with the Greenback maintaining its strength against other major currencies. Despite the losses, the GBP/USD pair remained stable at familiar levels, ahead of the Bank of England’s monetary policy decision. The pair traded at 1.2483, showing a decline of 0.20%.
Looking at the technical analysis, the GBP/USD pair is currently biased towards the downside, failing to break a support trendline near the day’s low of 1.2467. The failure to break this level could have led to further losses. The Relative Strength Index (RSI) indicates a bearish sentiment, with the slope pointing downwards, favoring sellers in the market.
If the GBP/USD pair manages to move above the psychological level of 1.2500, the next obstacle would be the 200-day moving average (DMA) at 1.2543. Beyond that, the pair could face resistance at the May 6 high of 1.294, followed by the cycle high at 1.2634, which was last seen on May 3rd. These levels will be critical for traders to watch in the coming sessions.
In conclusion, the GBP/USD pair is currently facing downward pressure, with the Pound Sterling weakening against the US Dollar. The market is eagerly anticipating the Bank of England’s policy decision, which could provide further direction for the pair. Traders should closely monitor key resistance levels, including the 200-DMA and recent highs, to gauge the potential for a reversal in the current trend.
