- GBP/USD extends gains for a second day, buoyed by the suspension of US tariffs on Mexico and Canada.
- The technical outlook remains bearish unless the pair clears the 1.2503 SMA and overcomes the 1.2576 resistance level.
- Conversely, sellers will need to push the pair below 1.2436 to revive bearish momentum, potentially targeting lower support levels.
The Pound Sterling (GBP) posted gains against the US Dollar (USD) for the second straight day after US President Donald Trump delayed tariff threats on Mexico and Canada. This postponement came as negotiations began between the parties to bolster efforts against fentanyl trafficking and illegal migration, pushing GBP/USD to trade at 1.2476, up 0.62%.
On the technical front, the outlook remains bearish unless buyers can propel the pair above key resistance levels. Specifically, GBP/USD must clear the 50-day Simple Moving Average (SMA) at 1.2503 and surpass the January 7 peak of 1.2576 to neutralize the current downside bias and shift momentum to the upside. The Relative Strength Index (RSI) suggests that buying strength is gathering in the short term. However, for bearish momentum to resume, the pair would need to fall below the February 3 high of 1.2436, which could pave the way for a decline toward the 1.2400 level. Should further weakness materialize, the next support to watch is the swing low from April 22, 2024, at 1.2299.
GBP/USD Price Chart daily
