- GBP/USD falls sharply, influenced by a move towards safer assets and a strengthening of the US Dollar.
- Technical analysis indicates a shift into bearish territory after falling below the 200-day moving average.
- Recovery targets include the 1.2500 level, with resistance at the 200-day DMA.
The British pound fell against the US Dollar late in the North American session, down 0.74%, and is trading at 1.2445 after reaching a daily high of 1.2559. Risk aversion caused a flight to safety, a headwind for the British pound even though UK GDP numbers were strong.
GBP/USD Price Analysis: Technical Outlook
Technically, the GBP/USD pair turned lower as it hit a successive series of lower highs and lower lows, while breaking key support levels. On its way south, the pair surpassed the 200-day moving average (DMA) at 1.2584, opening the door for a drop below 1.2500.
For a bearish continuation, GBP/USD needs to break the 1.2400 mark. A break of the latter would expose the November 17, 2023 low at 1.2374, followed by 1.2300.
On the other hand, if buyers manage to push GBP/USD above 1.2500, it could pave the way for further rises. The next resistance would be the 200-day moving average (DMA) at 1.2584 before 1.2600.
GBP/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
