GBP/USD Climbs 0.40% to 1.2691 on Weakening Dollar
Quick Overview:
Current Performance: GBP/USD climbs by 0.40% to 1.2691 due to a weaker US Dollar.
Technical Outlook: Neutral to slightly bearish; key support at 1.2664, 1.2627, 1.2600, and 1.2553.
Momentum Indicators: RSI indicates bearish momentum; trading above daily moving averages.
The GBP/USD currency pair has experienced an uptick, rising by 0.40% to trade at 1.2691. This increase depends on the US Dollar Index (DXY) decline. It has fallen to a new two-day low, dipping below 105. A softer US Dollar and steady US Treasury bond yields have supported the upward momentum for GBP/USDelds.
GBP/USD Technicals: Neutral to Slightly Bearish Outlook
The technical outlook for GBP/USD is currently neutral to slightly bearish. Key indicators like the Relative Strength Index (RSI) suggest bearish momentum. Key support levels include the 100-day moving average (DMA) at 1.2664, the 50-DMA at 1.2627, the 1.2600 mark, and the 200-DMA at 1.2553. On the resistance side, levels at 1.2700 and 1.2750 challenge GBP/USD, and it is unlikely to test the latter soon.
Despite the currency pair trading above its daily moving averages, the overall outlook remains neutral to slightly bearish due to the RSI indicating a dominance of sellers. If the support levels are breached, there is a potential for the pair to re-test its year-to-date (YTD) lows.
GBP/USD Rebounds to 1.2680 in Early NY Session
In the early New York session on Monday, GBP/USD is trading around 1.2680, rebounding after a sharp sell- in the previous week. The DXY struggles to maintain its position above the immediate resistance level of 106.00. The Pound Sterling remains close to its lowest level since mid-May, around 1.2635. Beawaitting a sustained break and acceptance below the 100-day SMA to trigger further pullbacks.
The short-term outlook for GBP/USD against the US Dollar is a downtrend. However, a minor rebound is expected if the support at key moving averages holds firm. A short-term recovery may occur if the GBP/USD can maintain its position above these support levels. However, the overall trend remains cautious, with a slightly bearish bias.
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