GBP/USD Price Analysis: Consolidates around 1.2700 after hitting 7-day low

June 10, 2024 5:37 pm

  • GBP/USD slightly down for the second session in a row.
  • Technicals indicate losing buyer momentum as RSI approaches the 50-midline.
  • A drop below 1.2700 could push GBP/USD towards key moving averages near 1.2686 and potentially lower.
  • Upside seen above 1.2750, with buyers eyeing 1.2800.

The British Pound extended its losses for the second consecutive trading session against the US Dollar, following last Friday’s stellar jobs report from the US, which triggered the likelihood of a less dovish Federal Reserve. That and uncertainty on the upcoming Fed’s meeting would keep Cable pressured. Therefore, the GBP/USD trades at 1.2713, down 0.01%

GBP/USD Price Analysis: Technical outlook

After struggling at around 1.2800 with key technical resistance levels, the GBP/USD tumbled below 1.2700 and printed a new seven-day low of 1.2687 before recovering some ground.

Although momentum still favors buyers, the Relative Strength Index (RSI) dropped sharply towards crossing the 50-midline, hinting that buyers are losing momentum. Nevertheless, Monday’s price action seems to form a ‘dragonfly doji,’ a bullish candlestick.

If GBP/USD reclaims 1.2750, it will be possible to challenge the June 7 high of 1.2813. Once cleared, the next resistance line will be 1.2850, followed by 1.2900.

Conversely, if GBP/USD prints a daily close below 1.2700, that would sponsor a leg-down toward the confluence of the 100-day moving average (DMA) at around 1.2686, ahead of the 50 and 200-DMAs each at 1.2602 and 1.2543, respectively.

GBP/USD Price Action – Daily Chart

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