The GBP/USD pair is experiencing modest losses, trading near 1.2770 during Tuesday’s Asian trading hours. This follows a recovery of the US Dollar (USD), which has limited the pair’s decline after it retraced to 1.2710 in the previous session.
Technical analysis from the 4-hour chart indicates a continued bearish sentiment for the pair. The price remains below the crucial 100-period Exponential Moving Average (EMA), reinforcing the downward trend. Additionally, the Relative Strength Index (RSI) is positioned below the 50-midline at approximately 44.0, favoring the sellers.
Support for GBP/USD is initially seen at the lower boundary of the Bollinger Band at 1.2735. A break below this level would target the 1.2700-1.2710 region, marking the low of August 2 and a psychological threshold. Further downside could see the pair testing 1.2615, the low of July 2.
Conversely, the first resistance on the upside is at 1.2840, the high of August 2. Beyond this, the next obstacle is at 1.2887, corresponding to the 100-period EMA. A break above this level could lead to a rally towards 1.3038, the upper boundary of the Bollinger Band.
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