The GBP/USD pair experienced a sharp decline following the release of better-than-expected US Non-Farm Payroll (NFP) data by the US Bureau of Labor Statistics (BLS). This boosted the US Dollar, causing the pair to drop near weekly lows, with GBP/USD trading at 1.2722, down 0.53% at the time of writing.
Technically, GBP/USD failed to surpass strong resistance levels, leading to a drop below the three-day range low of 1.2740. The Relative Strength Index (RSI) also shifted in favor of sellers, moving from around 64 to 54.26, nearing bearish territory.
In terms of support levels, the first support for GBP/USD is at the 1.2700 mark, followed by last Friday’s low of 1.2694. Further downward movement could see levels at 1.2680, the May 30 low, and the May 24 cycle low of 1.2674.
On the other hand, if buyers manage to reclaim 1.2740, the pair could remain range-bound between 1.2750 and 1.2800.
Overall, the GBP/USD pair faced pressure from the strong US NFP data, leading to a decline in the exchange rate. The technical outlook suggests a bearish momentum in the near term, with support levels to watch for further downside movement.