The GBP/USD remained steady after a positive UK GDP report and an increase in the US PCE Index. The pair is currently trading at 1.2642, virtually unchanged.
On a technical level, the GBP/USD is struggling to break above the key level of 1.2700, which is crucial for buyer momentum. Strong support is seen at 1.2634/45, where the 50 and 100-day moving averages converge. The Relative Strength Index (RSI) suggests that sellers are dominating, posing a risk of further losses.
If the pair breaks below 1.2634/45, the next support level is at 1.2600, followed by 1.2555 and 1.2500. To see a bullish continuation, traders need to surpass 1.2700 and clear the previous support trendline at 1.2730/40.
The Pound Sterling (GBP) is the oldest currency in the world, dating back to 886 AD, and is the official currency of the United Kingdom. It is the fourth most traded currency in the world, with key trading pairs being GBP/USD, GBP/JPY, and EUR/GBP. The value of the Pound Sterling is influenced by monetary policy decisions by the Bank of England, as well as economic indicators like GDP, PMIs, and employment data.
Overall, the GBP/USD is facing resistance at 1.2700, with strong support at 1.2634/45. The RSI suggests seller dominance, indicating the potential for further losses in the pair. Traders should watch for a break above 1.2700 for a bullish continuation.