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DailyBubble News

Bears in charge as ‘shooting star’ looms

The GBP/USD pair was down by 0.06% after reaching a three-week high of 1.2634. The Relative Strength Index (RSI) flattening suggests a normalization of buying pressure. Support levels are at 1.2500, 1.2474, and 1.2466, with a breach potentially testing 1.2400. Resistance levels can be found at the 200-day moving average, 1.2600, and the DMAs at 1.2612 and 1.2644.

The Pound Sterling held onto gains against the US Dollar but retraced from its recent high following a softer US Nonfarm Payrolls report. The GBP/USD trades at 1.2541, with buyers struggling to maintain prices above 1.2600, possibly leading to a test of the 200-DMA.

Technical analysis shows that the recent spike in GBP/USD breached the 50 and 100-DMAs, resembling a ‘shooting star’ pattern. The RSI indicates that buyers are in control but is showing signs of flattening, suggesting a potential pullback. Support levels to watch for are 1.2500, 1.2474, and 1.2466, with a further drop possibly testing 1.2400. On the other hand, resistance levels are at the 200-DMA, 1.2600, and the 50 and 100-DMAs at 1.2612 and 1.2644.

Overall, the GBP/USD pair is facing a critical juncture with potential for both upside and downside movements based on technical indicators.

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