GBP/USD Price Analysis: Tumbles below 1.2500 as bears cut bulls hopes short

FXStreet
Updated Apr 28, 2024 06:20
Mitrade

■GBP/USD registers a decline of 0.27%, influenced by US inflation data that suggests the Federal Reserve may delay rate cuts.


The pair's recent inability to break the 200-day moving average at 1.2557 highlights its downward bias, with support levels now in focus.


Potential for further losses if the 'dark cloud cover' candlestick pattern forms, targeting 1.2400 and possibly extending to the YTD low of 1.2300.


During the mid-North American session, the Pound Sterling retreats and registers losses against the US Dollar, slumping below 1.2500. Data from the United States showed that inflation is picking up, which would deter Fed intentions from cutting interest rates. The GBP/USD trades at 1.2481, down 027%.


GBP/USD Price Analysis: Technical outlook


Although the GBP/USD closed three days of consecutive gains, it remains downward biased, as buyers failed to crack stir resistance at the 200-day moving average (DMA) at 1.2557. That exposed the 1.2500 figure, which was surrendered by fundamental news.


If the GBP/USD finishes Friday’s session at around the 1.2480, that will form a ‘dark cloud cover,’ opening the door for further losses. The next support would be 1.2400, followed by the year-to-date (YTD) at 1.2300.


On the other hand, if buyers lift the spot price above 1.2500, that would open the door to challenge the 200-DMA.


GBP/USD Price Action – Daily Chart


GBP/USD Price Analysis: Tumbles below 1.2500 as bears cut bulls hopes short


GBP/USD


Overview

Today last price

1.2481

Today Daily Change

-0.0033

Today Daily Change %

-0.26

Today daily open

1.2514

 

Trends

Daily SMA20

1.2524

Daily SMA50

1.2626

Daily SMA100

1.2651

Daily SMA200

1.2559

 

Levels

Previous Daily High

1.2527

Previous Daily Low

1.2454

Previous Weekly High

1.2499

Previous Weekly Low

1.2367

Previous Monthly High

1.2894

Previous Monthly Low

1.2575

Daily Fibonacci 38.2%

1.2499

Daily Fibonacci 61.8%

1.2482

Daily Pivot Point S1

1.247

Daily Pivot Point S2

1.2426

Daily Pivot Point S3

1.2397

Daily Pivot Point R1

1.2542

Daily Pivot Point R2

1.2571

Daily Pivot Point R3

1.2614

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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