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GBP/USD Price Analysis: Remain bearish despite bouncing off weekly lows.

June 27, 2024

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GBP/USD climbs to 1.2652, up 0.25%, remaining under the 1.2703 weekly high.
Technical stance neutral; daily MAs range between 1.2641 and 1.2557.
‘Evening star’ pattern and bearish RSI suggest potential drop; support at 1.2641/39 (100 & 50-DMAs), 1.2600, 1.2555 (200-DMA).
For bullish move, GBP/USD must surpass 1.2700 and tackle resistance at 1.2730/40.

The Pound Sterling gathers some steam versus the Greenback, yet it remains trading below the weekly highs of 1.2703 as investors await the US Personal Consumption Expenditure (PCE) Price Index release, along with fears of the upcoming general election in the UK. The GBP/USD trades at 1.2652, up 0.25%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD is neutral biased further confirmed by almost fla daily moving averages (DMAs) trapped within the 1.2641-1.2557 range. The formation of an ‘evening star’ kept traders from reclaiming 1.2700, exacerbated Cable’s fall to a six-week low of 1.2612.

Momentum favors sellers as depicted by the Relative Strength Index (RSI) standing at bearish territory; therefore, the GBP/USD path of least resistance is tilted to the downside.

First support would be the confluence of the 100 and 50-DMAs at around 1.2641/39, followed by the 1.2600 psychological figure. Once surpassed, the next demand zone to challenge would be the 200-DMA at 1.2555.

For a bullish continuation, traders must claim 1.2700 and clear a previous support trendline turned resistance at around 1.2730/40.