- GBP/USD falls further amid weak UK economic data and escalating geopolitical tensions.
- Technical analysis suggests the pair may test key support levels at 1.2445, with the potential to reach the year-to-date low of 1.2299.
- The RSI shows oversold conditions, signaling strong bearish pressure, though not yet at extreme levels.
The Pound Sterling continues its downward trend against the US Dollar for the third consecutive day, falling 0.47% after disappointing UK Flash PMIs and Retail Sales data. This, combined with rising geopolitical tensions from the Russia-Ukraine and Middle East conflicts, has strengthened the US Dollar. As of writing, GBP/USD trades at 1.2529, after reaching a daily high of 1.2594.
GBP/USD Price Forecast: Technical Outlook
GBP/USD remains bearish, with sellers eyeing intermediate support at 1.2445, the May 9 swing low. A break below this level could see the pair testing the year-to-date (YTD) low of 1.2299, reached on April 22.
The Relative Strength Index (RSI) is oversold, dipping below the 30 level, but has not yet reached extreme conditions typical of strong downtrends—oversold conditions would be confirmed if the RSI approaches 20.
On the upside, if bulls reclaim 1.2600, the next resistance target would be the November 20 high at 1.2714. A break above that could lead to a test of the 200-day Simple Moving Average (SMA) at 1.2818.
GBP/USD Price Chart – Daily
