On Friday, the Pound Sterling experienced a decline against the US Dollar, despite better-than-expected economic data emerging from the UK. This depreciation was attributed to concerns regarding a potential sharper slowdown in the US economy, exacerbated by deteriorating consumer sentiment. The GBP/USD pair traded at 1.2510, reflecting a decrease of 0.10%.
Technical Analysis of GBP/USD Price Movement
Looking at the technical aspect, the retracement of GBP/USD towards the 1.2500 level instills a sense of optimism among sellers for further declines in spot prices. The momentum in buying appears to be waning, evidenced by the failure of buyers to breach the 200-day moving average (DMA) situated at 1.2541. Additionally, the Relative Strength Index (RSI) maintains a bearish stance, potentially signaling the path for continued downward movement.
In the scenario of a bearish continuation, sellers would need to surpass the May 9 low of 1.2445. Subsequently, attention would turn to the psychological barrier at 1.2400, followed by the year-to-date (YTD) low of 1.2299.
Conversely, should buyers manage to sustain the GBP/USD exchange rate above 1.2500, they might endeavor to challenge the 200-DMA, succeeded by the 50-DMA positioned at 1.2594. Further resistance levels lie at the 100-DMA, marked at 1.2635.
