- GBP/USD fell to 1.2588, reversing gains following the BoE’s decision to maintain current interest rates.
- Technical barriers on an up move at 1.2665, setting the stage for potential further declines below 1.2600.
- Key support levels to watch: 1.2550, followed by November and April lows at 1.2486 and 1.2299 respectively.
The British pound is paring some of its earlier gains against the US dollar after the Bank of England (BoE) kept interest rates steady and pushed GBP/USD towards an intraday high of 1.2664. However, once the dust settled, the pair fell below 1.2600, and at the time of writing it was trading at 1.2578.
GBP/USD Price Forecast: Technical Outlook
GBP/USD remains bearish, reaffirming its bias after buyers failed to clear the December 17 low that turned the resistance at 1.2665. This opened the way for further declines below 1.2600, extending the decline below 1.2590.
The momentum remains bearish, as reflected by the Relative Strength Index (RSI), which is below the neutral line and tilted to the downside.
If sellers want to maintain control, they need to clear the area at 1.2550. Once crossed, the next stop will be the November 22 low at 1.2486, followed by the April 22 low at 1.2299.
Conversely, if buyers want to regain control, they need to regain the 1.2600 level followed by the December 17 high of 1.2728. A violation of the latter will reveal convergence of the 50- and 200-day plain moving averages (SMAs) at around 1.2803 and 1.2815, respectively.
