- The Libra falls against the Dollar, awaiting news on Fed policy.
- GBP/USD is approaching the 50-day MA; further decline is possible as bears target 1.2600.
- Break below 1.2700 could look for weekly lows, and bounce would target March highs.
The British pound falls 0.12% against the US dollar in early trading of the North American session, as traders prepare for the Federal Reserve's monetary policy. A softer inflation report in the United Kingdom (UK) did not move the needle on the session, as GBP/USD trades at 1.2706, with sellers hoping to push prices below 1.2700.
GBP/USD Price Analysis: Technical Outlook
The daily chart shows the pair with a neutral bias; GBP/USD buyers supported the 50-day moving average (DMA) at 1.2685, the day's low, but broke above 1.2700 and hovered around that area. The Relative Strength Index (RSI) is pointing lower below the midline of 50, indicating that selling pressure persists.
If GBP/USD extends its losses below 1.2700, it will challenge the 50-DMA followed by the current week's low of 1.2667. A further decline in the 100-DMA is expected at 1.2619, ahead of the figure at 1.2600.
On the other hand, if buyers reclaim the March 18 high at 1.2746 and break a resistance trend line around the 1.2745/55 area, a recovery towards the 1.2800 mark is expected.
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.
