The GBP/USD pair edged lower to 1.2675 during the Asian trading session on Friday, marking its lowest level since August. The US Dollar (USD) gained broadly following cautious remarks from Federal Reserve (Fed) Chair Jerome Powell and stronger-than-expected US economic data, putting downward pressure on the British Pound.
Traders are awaiting the release of the UK’s preliminary third-quarter (Q3) Gross Domestic Product (GDP) data later in the day, which could further influence the pair’s movement.
From a technical standpoint, GBP/USD maintains a bearish outlook, with the pair trading below the key 100-period Exponential Moving Average (EMA) on the daily chart. The Relative Strength Index (RSI) remains below the midline at around 33.50, reinforcing the downside bias.
If the bearish momentum continues, the next target for the pair is the lower limit of the Bollinger Band at 1.2618. A break below this level could expose further downside risks, with 1.2500 (the psychological level) and 1.2467 (the May 8 low) coming into focus.
On the upside, if buyers begin to show interest, the first significant resistance is located at 1.2720, the high from November 14. A breakthrough above this level could pave the way for a move toward 1.2873 (the high from November 12) and potentially 1.2955, where the 100-period EMA lies.
With the US Dollar showing strength, any rebound in GBP/USD may face significant resistance ahead, making the overall trend still tilted to the downside.
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