GBP/USD Price Analysis: Recovers above 1.2700 amid soft US Dollar
Source Fxstreet
- GBP/USD bounces back off weekly lows around 1.2680.
- Technical outlook shows neutral to upward bias, with key resistance at 1.2803.
- Critical support levels include May 24 low at 1.2674 and the 50-DMA at 1.2581.
The Pound Sterling recovered some ground against the US Dollar on Thursday, as US Treasury yields are sliding, undermining the Greenback. Consequently, the GBP/USD bounced off weekly lows, reached 1.2680, and traded at 1.2728, gaining 0.20%.
GBP/USD Price Analysis: Technical outlook
The daily chart suggests the GBP/USD is neutral to upward bias, but the buyer's failure to crack the March 21 daily high at 1.2803 opened the door for a pullback. Although momentum remains bullish, as shown by the Relative Strength Index (RSI), buying pressure begins to fade after testing 1.2800.
For a bullish continuation, the GBP/USD needs to surpass 1.2803. That would sponsor a rally to the year-to-date (YTD) high of 1.2893, followed by 1.2900. Overhead resistance lies ahead, with 1.3000 seen as a crucial resistance.
Conversely, if sellers move in decisively and push the major below 1.2700, further losses lie ahead. Key support levels would be tested. Initially, the May 24 low of 1.2674, followed by the 1.2600 mark. Down below, the 50-day moving average (DMA) at 1.2581 awaits.
GBP/USD Price Action – Daily Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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