The Pound Sterling has taken a hit, dropping to 1.2772, down by 0.20%, following significant losses in global markets, especially in Asian equities which triggered trading halts. This article provides a technical analysis and price outlook for GBP/USD.
Technical Analysis: Bearish Momentum and Key Levels
The technical analysis shows bearish momentum for GBP/USD, with the Relative Strength Index (RSI) suggesting further declines in the near term. Key support levels to watch include the August 2 low at 1.2707, the 100-day moving average (DMA) at 1.2683, and the 200-DMA at 1.2645.
For a bullish reversal, GBP/USD needs to surpass the 50-DMA at 1.2786 and the August 2 high at 1.2840. If successful, the pair could target levels at 1.2860 and 1.2900.
GBP/USD Price Action – Daily Chart
Analysis and Conclusion
The recent decline in GBP/USD is a result of the broader market turmoil, with Asian equities leading the way. Technical indicators suggest a bearish outlook for the pair, with key support levels and resistance levels identified. Traders and investors should closely monitor these levels for potential trading opportunities.