Pound Sterling could break the psychological support of the 1.2600 level

GBP/USD Price Analysis: Could test the level of 1.2600, next support at March’s low

GBP/USD extends its losses for the second consecutive day, depreciating to near 1.2620 during the Asian session on Wednesday. The pair could test the psychological support level of 1.2600. If this level is breached, it could prompt the pair to revisit March’s low at 1.2575.

The technical analysis of the GBP/USD pair suggests a bearish trend. The 14-day Relative Strength Index (RSI) is positioned below 50, indicating a bearish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) confirms the bearish trend, as the MACD line is below the centerline and exhibits divergence below the signal line. Read more…

GBP/USD drifts lower to 1.2620, UK GDP data looms

The GBP/USD pair edges lower to 1.2620 during the early Asian trading hours on Wednesday. The major pair remains capped under the key 100-day Exponential Moving Average (EMA). Many Federal Reserve (Fed) policymakers stick to their path of interest-rate cuts amid the bumpy road to inflation and expect to cut rates three times in 2024, which might weigh on the Greenback. On Thursday, the US and UK Gross Domestic Product (GDP) data will be released. 

Despite recent monthly inflation increases, Fed Chair Jerome Powell said last week that pricing pressures would continue to ease and that it may be appropriate to cut interest rates later this year. The majority of US central bank officials expect to cut rates three times in 2024. These remarks push the Fed’s stance more dovish and drag the US Dollar (USD) lower in recent sessions. Read more…